Company Number: 14549271

Analysis Date: 2025-07-29 13:23 UTC

1. Risk Rating: HIGH

The company shows significant solvency risk due to a large creditor balance equal to its fixed assets, resulting in minimal net assets. Liquidity is effectively non-existent, with current assets of only £1 against current liabilities of £1,683,710. Operational stability is uncertain given no employees and limited financial activity. Regulatory compliance appears satisfactory with up-to-date filings, but limited disclosure restricts thorough assessment.

2. Key Concerns:

• High leverage: Fixed assets of £1.68 million are matched by equal creditors due after more than one year, indicating a heavily leveraged balance sheet with negligible equity.
• Minimal liquidity: Current assets of £1 against current liabilities of £1,683,710 suggest the company lacks liquid resources to meet short-term obligations.
• Lack of operational activity: No employees reported and no profit and loss account filed; insufficient information about business operations or revenue generation raises concerns about sustainability.

3. Positive Indicators:

• Up-to-date statutory filings: Accounts and confirmation statements are filed on time with no overdue submissions or penalties.
• Single experienced director/owner: Mary Ellis holds full control, which may facilitate swift decision-making.
• Incorporated recently: The company is relatively new (incorporated in December 2022), which could mean it is still in early stages of development or asset acquisition.

4. Due Diligence Notes:

• Investigate the nature and terms of the creditors totaling £1.68 million, including maturity, security, and covenants.
• Obtain detailed profit and loss information to assess revenue, expenses, and cash flow trends.
• Clarify operational model and plans for generating income given the absence of employees and minimal current assets.
• Review any related party transactions or shareholder loans that may affect financial stability.
• Confirm there are no contingent liabilities or off-balance sheet risks not disclosed in the micro-entity accounts.