Company Number: 14498664

Analysis Date: 2025-07-20 16:57 UTC

1. Risk Rating: HIGH
   The company exhibits negative net assets and net current liabilities as of the latest financial year, indicating insolvency risk. The decline from prior years’ modest positive net assets to a substantial deficit suggests financial distress.

2. Key Concerns:

• Solvency deterioration: Net assets moved from positive £1,663 (2023) to negative £11,050 (2024), indicating liabilities exceed assets and potential inability to meet obligations.
• Liquidity constraints: Current liabilities (£19,858) exceed current assets (£8,808) by a significant margin, reflecting poor working capital and cash flow challenges.
• Operational scale and sustainability: The company operates as a micro-entity with only one employee and limited asset base, raising concerns about scalability and resilience to financial shocks.

3. Positive Indicators:

• Compliance up to date: No overdue filings for accounts or confirmation statements, demonstrating good regulatory compliance.
• Clear ownership and management: Sole director and 100% shareholder is identified, facilitating clear decision-making and governance.
• Recent incorporation and industry focus: Being newly incorporated in late 2022 and operating in IT consultancy with wireless telecommunications may provide growth opportunities in a high-demand sector.

4. Due Diligence Notes:

• Investigate the cause of the sharp deterioration in net assets within one year and whether this reflects one-off events or ongoing operational losses.
• Review cash flow statements and creditor aging to assess immediate liquidity pressures and risk of default.
• Clarify business model viability given the micro-entity scale and limited employee base, including contracts, client pipeline, and revenue forecasts.
• Confirm director’s plans for recapitalization or restructuring to restore financial health.
• Verify no undisclosed contingent liabilities or litigation risks impacting solvency.