Company Number: 15066610

Analysis Date: 2025-07-29 13:04 UTC

1. Risk Rating: HIGH
   The financial data reveals a significant imbalance where the company reports negative net assets (-£23,244) and creditors exceeding current assets by £43,393. This indicates an overextension of liabilities relative to assets, posing a solvency risk. The company's micro-entity status and very recent incorporation further limit the depth of historical financial insight.

2. Key Concerns:

• Negative Net Assets: The balance sheet shows net liabilities, suggesting the company’s obligations exceed its resources.
• High Creditors vs. Current Assets: Current liabilities exceed current assets by a wide margin, indicating potential liquidity issues.
• Director Turnover and Concentrated Control: Recent director resignations and appointments, combined with two PSCs holding 75-100% shares, may raise governance and continuity questions.

3. Positive Indicators:

• Timely Filing Compliance: Both accounts and confirmation statements are up to date, suggesting regulatory adherence.
• Active Status and Small Scale: Operating as a micro-entity with only two employees may mean lower operational complexity and overhead.
• New Management: Appointment of a managing director in February 2025 could reflect an effort to stabilize or improve operations.

4. Due Diligence Notes:

• Clarify the Nature and Terms of Creditors: Investigate the composition of the £43,393 creditors, especially since they exceed current assets. Determine if these are trade payables, loans, or related party debts and their repayment terms.
• Review Cash Flow and Profitability: Since profit & loss data is not provided, request management accounts to assess operational cash flow and ongoing viability.
• Assess Impact of Director Changes: Understand reasons behind director resignations and the role of current PSCs in day-to-day management and decision-making.
• Confirm No Outstanding Regulatory or Legal Issues: Verify if there are any pending compliance matters or disputes given the recent management changes and financial position.