Company Number: 15195925

Analysis Date: 2025-07-20 15:37 UTC

1. Risk Rating: HIGH
   The company shows negative net assets (£-85,963) and net current liabilities (£-145,963) within its first financial period, indicating solvency and liquidity risks. The significant related party creditor balance (£394,585) further highlights dependency on director-related funding rather than external capital or operating cash flow.

2. Key Concerns:

• Negative equity and net current liabilities demonstrate the company is currently insolvent on a balance sheet basis and may struggle to meet short-term obligations.
• Large creditor balance owed to a related party (Evabuild Limited) suggests reliance on director-connected entities for financing, which may not be sustainable or arms-length.
• Minimal cash on hand (£4,510) relative to current liabilities (£396,583) indicates liquidity stress and potential cash flow difficulties to fund ongoing operations.

3. Positive Indicators:

• The company is newly incorporated (October 2023) and has commenced trading recently (January 2024), so early losses or undercapitalization may be expected in a start-up phase.
• Tangible fixed assets (£60,000) in freehold property may provide some asset backing, though not depreciated.
• Directors hold significant control with aligned interests, which could facilitate agile decision-making and capital support if needed.

4. Due Diligence Notes:

• Investigate the nature and terms of the related party debt to Evabuild Limited to assess repayment expectations, interest, and whether it can be converted to equity or is short-term debt.
• Review business plan and cash flow forecasts to understand the company’s pathway to profitability and ability to address negative working capital.
• Confirm if additional capital injections are planned or if there are external financing arrangements to improve liquidity.
• Assess the directors’ capacity and willingness to continue supporting the company financially and operationally.
• Verify compliance with statutory filing deadlines and governance, noting currently no overdue filings.