Company Number: 14532554

Analysis Date: 2025-07-29 12:56 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with net current liabilities of £6,109 and net liabilities overall of £2,941 as at 31 December 2023. The current liabilities substantially exceed current assets, indicating an inability to cover short-term obligations from available liquid resources.

2. Key Concerns:

• Negative net current assets (-£6,109) and net liabilities (-£2,941) highlight weak financial stability and possible insolvency risk if not addressed.
• Reliance on director loans (£7,397) with no fixed repayment terms increases financial risk and may affect cash flow management.
• Minimal cash balance (£897) relative to current liabilities (£9,000) suggests potential liquidity stress in meeting immediate obligations.

3. Positive Indicators:

• The company is newly incorporated (December 2022) and active, indicating early-stage operations that may still be developing financially.
• Compliance with filing requirements is current; no overdue accounts or confirmation statements, reflecting good regulatory adherence.
• Tangible assets of £3,168 provide some asset backing beyond current assets, albeit small.

4. Due Diligence Notes:

• Investigate the nature and terms of the director loan to assess risk exposure and repayment prospects.
• Review business model viability and cash flow projections to understand the path to profitability and improved liquidity.
• Confirm whether the company has access to additional funding sources or credit facilities to cover short-term liabilities.
• Understand the revenue generation and client base given the SIC code for management consultancy, as financial data alone shows no turnover details.
• Clarify any contingent liabilities or guarantees that may further impact solvency.