Company Number: 14717969

Analysis Date: 2025-07-29 19:11 UTC

1. Risk Rating: HIGH
   Justification: The company is newly incorporated with a negative net asset position (£-416) at the first year-end, indicating initial losses or investment shortfall. Current liabilities slightly exceed current assets, and there is a creditor balance falling due after more than one year nearly equal to current assets, suggesting potential solvency strain. The scale and scope of operations appear minimal, limiting operational resilience.

2. Key Concerns:

• Negative shareholders' funds and net assets at the first reporting date, indicating initial financial weakness.
• Current liabilities (£14,400) marginally exceed current assets (£14,224), resulting in negative working capital if accruals and deferred income (£240) are considered, raising liquidity concerns.
• Limited financial history due to recent incorporation (March 2023) and absence of profit and loss details restricts ability to assess operational performance and sustainability.

3. Positive Indicators:

• Timely filing of accounts and confirmation statements indicates good regulatory compliance and governance discipline.
• Ownership and control concentrated in a single main shareholder/director who is also actively involved, which may facilitate swift decision-making and capital support if required.
• Micro-entity status allows for simplified reporting and potentially lower administrative burdens.

4. Due Diligence Notes:

• Request management accounts or internal financial reports to evaluate current trading performance and cash flow beyond the first year.
• Clarify nature and terms of creditors falling due after more than one year (£14,400), to understand debt servicing obligations and refinancing risk.
• Investigate the company’s business plan and capital structure to assess ability to generate profits and strengthen net asset position.
• Confirm absence of any director disqualifications or compliance breaches beyond public data.
• Understand how the negative equity arose—whether from start-up costs, losses, or other factors.