Company Number: 14500693

Analysis Date: 2025-07-29 12:41 UTC

1. Risk Rating: HIGH

   Justification: The company shows extremely limited financial substance with nominal net assets (£3) and zero current assets including cash. The turnover is very low (£61,320) with minimal operating profit (£20), indicating fragile operational scale. Additionally, the company relies on director loans for financing, which raises concerns about its solvency and liquidity.

2. Key Concerns:

   • Liquidity Risk: Zero reported cash and current assets means the company has no liquid resources to meet immediate obligations, posing a risk of cash flow shortfalls.
   • Reliance on Director Loans: The company has significant outstanding loans from a director (~£20,000), suggesting dependence on related-party funding rather than sustainable external financing or operational cash flow.
   • Minimal Operating Scale: Turnover and profit levels are very low, and no fixed assets or other tangible resources are recorded, raising questions about the viability of ongoing operations and ability to generate consistent revenue.

3. Positive Indicators:

   • Timely Filings: The company is up to date with both accounts and confirmation statement filings, indicating compliance with regulatory requirements.
   • Active Status: The company is active and not in liquidation or any insolvency process.
   • Clear Ownership and Control: Ownership and control are consolidated with a single person holding 75-100% shares and voting rights, which may facilitate swift decision-making.

4. Due Diligence Notes:

   • Verify the nature and terms of the director loans, including repayment schedules and any security interests.
   • Investigate cash flow patterns and future revenue projections to assess whether the company can improve liquidity and reduce reliance on director funding.
   • Assess the business model and contracts to understand growth prospects and operational sustainability given the low turnover and asset base.
   • Confirm that no contingent liabilities or undisclosed debts exist that could exacerbate solvency risk.
   • Review any related-party transactions for governance and compliance with arm’s length principles.