Company Number: 14123692

Analysis Date: 2025-07-29 12:17 UTC

1. Risk Rating: MEDIUM
   The company has demonstrated a significant turnaround from negative net assets and shareholders' funds in 2023 to a positive and improving financial position in 2024. However, given its recent incorporation (2022) and the relatively limited operational history with fluctuating asset and liability positions, caution is warranted. The micro-entity status limits detailed financial disclosures, restricting a deeper risk assessment.

2. Key Concerns:

• Volatility in Financial Position: The company moved from negative net assets (£-5,018) in 2023 to positive net assets (£137,174) in 2024, which may indicate operational or accounting irregularities or a capital injection that needs further clarification.
• High Current Liabilities: Despite the improved net current assets, current liabilities remain substantial (£266,100 in 2024), which could pressure liquidity if not managed carefully.
• Lack of Employees: The average number of employees dropped to zero in 2024 from one in 2023, raising questions about operational capacity and business continuity.

3. Positive Indicators:

• Improved Working Capital: The company shows a healthy net current asset position (£110,712) in 2024, indicating an ability to cover short-term liabilities.
• No Overdue Filings: Accounts and confirmation statements are up to date, reflecting good regulatory compliance.
• Micro-Entity Exemption Used Appropriately: The company complies with micro-entity reporting standards, which is consistent with its size and turnover.

4. Due Diligence Notes:

• Investigate the nature of the significant increase in fixed assets and current assets from 2023 to 2024 to understand the source of the capital and whether it is sustainable.
• Clarify the company’s operational model given the absence of employees in 2024, including reliance on contractors or outsourced services.
• Review detailed cash flow information and creditor composition to assess liquidity risk and timing of liabilities.
• Confirm the directors’ plans for managing current liabilities and sustaining operational activity given the small scale and recent establishment.