Company Number: 13942796

Analysis Date: 2025-07-20 16:57 UTC

1. Risk Rating: MEDIUM

The company shows a small negative net asset position and net current liability as of the latest accounts, which indicates some solvency risk. However, the scale of these negative balances is modest for a micro-entity less than two years old. The limited financial history and small asset base suggest caution, but no severe distress signals are evident.

2. Key Concerns:

• Negative Net Assets and Working Capital: As of 31 March 2024, net current assets are negative (£-428), indicating current liabilities slightly exceed current assets, which could pressure liquidity.
• Early Stage with Limited Financial History: Incorporated in 2022, the company has only two years of financial data with limited scale, making trend analysis and sustainability assessment difficult.
• Director Composition and Experience: One director is a student, and the other two are relatively young professionals without clear evidence of industry leadership or financial management experience, which might impact operational stability.

3. Positive Indicators:

• Filing Compliance: All statutory filings, including accounts and confirmation statements, are up to date, indicating good regulatory compliance.
• Ownership and Control: A single PSC owns 75-100% of shares and voting rights, suggesting clear governance and decision-making structure.
• Industry Focus: The company operates in IT-related services (repair, consultancy, software development), sectors with growth potential and lower fixed asset intensity, which may mitigate capital risks.

4. Due Diligence Notes:

• Review the company's cash flow statements and bank balances to assess liquidity beyond the balance sheet snapshot.
• Investigate the nature and terms of current liabilities to determine if these are short-term trade creditors or loans requiring imminent repayment.
• Evaluate directors’ qualifications and business plans to understand operational viability and growth prospects.
• Confirm absence of any director disqualification or regulatory enforcement actions.
• Assess customer contracts or pipeline to gauge revenue stability and scalability.