Company Number: 14673425

Analysis Date: 2025-07-29 18:15 UTC

1. Risk Rating: HIGH
   The company exhibits a high risk profile primarily due to negative net assets and net current liabilities at its first financial year end, indicating potential insolvency and liquidity challenges.

2. Key Concerns:

• Negative Net Assets and Working Capital: The balance sheet shows net liabilities of £452 and negative net current assets (£-452), which suggests the company’s liabilities exceed its assets and it may struggle to meet short-term obligations.
• Minimal Operating History and Financial Data: Incorporated in February 2023, the company has less than one full year of trading history with very limited financial performance data, making it difficult to assess operational viability.
• Single Director and Shareholder Control: Full control and ownership are vested in one individual, which increases governance and operational risk due to concentration of control and potential lack of independent oversight.

3. Positive Indicators:

• Compliance with Filings: The company has filed both its accounts and confirmation statement on time, indicating good compliance with regulatory requirements.
• Small Company Accounting Regime: The company has adopted small company exemptions which helps reduce administrative burden and costs, appropriate for its size and stage.
• Clear Accounting Policies: The financial statements disclose standard accounting policies under FRS 102 section 1A, providing transparency regarding revenue recognition and accounting basis.

4. Due Diligence Notes:

• Investigate the Nature and Terms of Creditors: The £969 of current liabilities should be reviewed to understand the composition and repayment terms, especially given the cash balance is only £517.
• Assess Business Model and Revenue Potential: With no turnover details disclosed and minimal operating history, further inquiry into the company’s business plan, customer base, and contract pipeline is needed.
• Evaluate Director’s Financial Support and Plans: Given the negative equity and working capital deficit, it is important to understand if the sole director plans to inject further capital or secure financing to maintain operations.
• Review Director’s Background and Related Party Transactions: Confirm there are no conflicts of interest or related party debts that could impact financial stability.

Executive Summary:
Three Aces Group Limited is a newly incorporated private company showing negative net assets and working capital after its first financial year, pointing to potential solvency and liquidity risks. While regulatory compliance is up to date, the lack of trading history and concentration of control raise operational uncertainties. Further due diligence on creditor terms, business prospects, and director support is recommended to gauge financial sustainability and risk exposure.