Company Number: 14210964

Analysis Date: 2025-07-29 13:14 UTC

1. Risk Rating: MEDIUM
   Justification: The company is very young (incorporated July 2022) and has no turnover for the latest reported financial year, with a reported loss. While it holds positive net assets and no current liabilities, the lack of recent revenue and declining net assets suggest caution. The micro entity status limits detailed financial disclosure.

2. Key Concerns:

   • Zero turnover in latest year: The company reported £0 turnover for the year ending July 2024, after a modest £67,200 in the prior period, indicating potential operational or market challenges.
   • Operating loss and cash burn: The company recorded a loss of £11,074 in the latest period with continuing staff costs, which raises concerns about sustainable cash flow and profitability.
   • Declining net assets and current assets: Net assets declined from £38,122 to £27,049, with current assets reducing by nearly half, signaling depletion of resources and possible liquidity constraints over time.

3. Positive Indicators:

   • No current liabilities: The absence of short-term creditors reduces immediate solvency risk.
   • Positive net assets: Despite losses, the company maintains positive shareholder funds, indicating some buffer to absorb losses.
   • Compliance maintained: All statutory filings (accounts and confirmation statements) are up to date with no overdue reports or penalties, indicating good governance and regulatory compliance.

4. Due Diligence Notes:

   • Investigate reasons behind zero turnover in the most recent year and prospects for revenue recovery or business pivot.
   • Review cash flow statements and bank balances (not provided) to assess liquidity beyond balance sheet figures.
   • Clarify the nature and sustainability of staff costs relative to business activity.
   • Confirm the business model given the SIC codes span management consultancy, software development, and accommodation services, which appear diverse and potentially unfocused.
   • Evaluate director background and plans for business development to understand strategic direction.