Company Number: 15163920

Analysis Date: 2025-07-20 18:45 UTC

1. Risk Rating: HIGH
   Justification: The company, incorporated less than one year ago, presents negative net assets and shareholders’ funds of approximately £5,530, with current liabilities exceeding current assets by £5,530. This indicates insolvency at the balance sheet date and raises immediate concerns about the ability to meet short-term obligations.

2. Key Concerns:

• Negative working capital: Current liabilities (£10,694) significantly exceed current assets (£5,164), indicating potential liquidity constraints.
• Negative net assets/shareholders’ funds: The company is effectively insolvent on a balance sheet basis with net liabilities of £5,530.
• Early stage of operation with limited financial history: Incorporated in September 2023, there is a lack of historical performance data to assess operational sustainability.

3. Positive Indicators:

• Compliance: All statutory filings (accounts and confirmation statement) are up to date with no overdue notices, signaling good governance and regulatory compliance thus far.
• Clear ownership and management: Two directors each hold 25-50% share and voting control, suggesting a stable ownership structure.
• Small scale operations consistent with micro-entity status: Limited staff (2 employees) and modest stock levels may imply controlled overheads.

4. Due Diligence Notes:

• Investigate the company’s business plan and cash flow forecasts to understand how it plans to address current insolvency and fund ongoing operations.
• Review supplier and creditor arrangements to assess risk of enforcement actions or demands for payment given negative working capital.
• Confirm whether there are any contingent liabilities or off-balance sheet obligations not reflected in the accounts.
• Obtain management commentary on initial trading results and prospects for scaling revenue and profitability.
• Verify if there has been any external funding or shareholder loans beyond the reported share capital of £100.