Company Number: 14937460

Analysis Date: 2025-07-20 11:13 UTC

1. Risk Rating: HIGH
   The company shows significant net liabilities (£-25,806) at its first financial year-end, indicating poor solvency and inability to meet obligations without external funding. Negative net current assets and shareholders’ funds further underscore financial distress.

2. Key Concerns:

• Negative net assets and net current liabilities highlight severe solvency risk and potential inability to cover short-term debts.
• No employees and minimal current assets (£1,523) suggest limited operational activity and possibly no revenue generation as yet, raising sustainability concerns.
• The company is very newly incorporated (June 2023) and already shows negative equity, indicating initial funding or asset valuation issues.

3. Positive Indicators:

• The company is compliant with filing deadlines for accounts and confirmation statements, showing regulatory compliance to date.
• Sole director and 100% shareholder control (Lena Dalal) may facilitate swift decision-making and capital injections if required.
• Micro-entity accounting standards applied, appropriate for company size, simplifying compliance.

4. Due Diligence Notes:

• Investigate the nature of current liabilities (£27,329) to assess creditor risk and maturity profile.
• Clarify the reason for negative net assets: whether due to start-up losses, shareholder loans, or other factors.
• Review business plan and funding sources to understand how the company intends to achieve operational stability and improve liquidity.
• Confirm the absence of any related party transactions or guarantees that may impact financial risk.
• Assess director’s capacity to inject further capital or secure external financing.