Company Number: 14771625

Analysis Date: 2025-07-20 16:39 UTC

1. Risk Rating: MEDIUM
   The company is newly incorporated (less than 2 years old) with minimal net assets (£162) and relatively high long-term liabilities (£8,511), which suggests a fragile financial structure. However, it is current with filings and has positive net current assets, indicating some short-term liquidity.

2. Key Concerns:

• Low Net Asset Base: Net assets of only £162 indicate minimal equity cushion to absorb losses or financial shocks.
• Long-term Liabilities Nearly Equal to Total Assets: Creditors due after more than one year (£8,511) are close to total assets less current liabilities (£8,673), implying potential solvency stress if those obligations crystallize soon.
• Early Stage of Operations with Limited Financial History: Incorporated in March 2023, the company’s financial performance and operational sustainability remain unproven, increasing uncertainty.

3. Positive Indicators:

• Positive Net Current Assets: Current assets exceed current liabilities by £1,793, suggesting the company can meet short-term obligations.
• Compliance and Governance: All statutory filings (accounts and confirmation statements) are up to date, indicating good regulatory compliance.
• Clear Ownership and Leadership: Single director and 75-100% shareholder with no apparent director disqualifications or governance issues.

4. Due Diligence Notes:

• Review nature and terms of long-term liabilities to assess repayment schedules and covenants.
• Investigate initial business plan and cash flow forecasts to evaluate operational sustainability.
• Monitor future filings for revenue growth, profitability trends, and changes in working capital.
• Confirm absence of related party transactions or contingent liabilities that may not be apparent from micro-entity accounts.
• Examine director’s background and capacity to support the company financially or operationally if needed.