Company Number: 14226117

Analysis Date: 2025-07-19 13:06 UTC

1. Risk Rating: MEDIUM
   The company shows modest net current assets and shareholders’ funds but has minimal cash reserves and significant current liabilities, including corporation tax and other taxes payable. The liquidity position is fragile, and the business is in an early stage of development with limited operational scale.

2. Key Concerns:

• Liquidity Risk: Cash at bank is negligible (£11 at year-end 2024), despite receivables of £30,001; reliance on timely debtor collections is critical.
• Tax Liabilities: Corporation tax and social security liabilities have increased by over 50% year on year, totaling £28,068 current liabilities, which could pressure cash flows.
• Scale and Operational Sustainability: The company employs only one person (the director), indicating limited operational capacity and potential vulnerability to disruptions or growth constraints.

3. Positive Indicators:

• Improving Net Current Assets: Net current assets increased from £446 in 2023 to £668 in 2024, showing some incremental strengthening of working capital.
• No Overdue Filings: Both accounts and confirmation statements are filed on time, reflecting good compliance and governance practices.
• Clear Ownership and Control: Ownership is concentrated with two known individuals, allowing for streamlined decision-making.

4. Due Diligence Notes:

• Investigate the nature and collectability of the £30,001 debtors, specifically whether these are trade receivables or related party balances, and their aging profile.
• Review cash flow forecasts and working capital management plans to assess how the company intends to meet imminent tax payments and other liabilities given the minimal cash.
• Assess the business model and pipeline of contracts or sales to gauge sustainability and prospects for increasing operational scale beyond the single employee/director.
• Confirm no director disqualifications or adverse legal proceedings affecting the controlling individuals.
• Evaluate any contingent liabilities or off-balance sheet obligations not disclosed in the abbreviated accounts.