Company Number: 14573141

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

1. Risk Rating: HIGH
   Justification: The company is newly incorporated (2023) with minimal financial history. Its current liabilities (£6,000) significantly exceed current assets (£1,287), indicating negative working capital and potential liquidity constraints. The presence of long-term creditors further stresses solvency. No operational employees beyond directors and minimal net assets (£1,328) raise concerns about operational sustainability.

2. Key Concerns:

• Liquidity Risk: Current liabilities exceed current assets by a large margin, indicating potential cash flow difficulties to meet short-term obligations.
• Solvency Risk: Net assets are minimal and long-term liabilities (£6,000) further reduce financial stability. The company may struggle to meet creditor claims if operations do not generate sufficient cash flow.
• Operational Stability: No employees reported except directors, suggesting limited operational capacity or early-stage development with uncertain business prospects.

3. Positive Indicators:

• Compliance: No overdue filings for accounts or confirmation statements, indicating good governance and regulatory compliance to date.
• Clear Ownership and Management: Two directors with significant control (25-50% shareholding each) and a company secretary, all based at the same registered address, suggest centralized management and control.
• Micro Entity Filing: Use of micro-entity provisions reduces administrative burden, appropriate given the company's early stage and size.

4. Due Diligence Notes:

• Investigate nature and terms of the £6,000 creditors falling due after one year to assess the company’s long-term debt obligations and repayment capacity.
• Clarify the business model and revenue streams, especially given the note about "trading the sale of perfumes and digital assets" but no reported employees or turnover figures.
• Review cash flow forecasts and working capital management plans to understand how the company intends to address current liquidity shortfalls.
• Assess directors’ background and experience in the perfume manufacturing industry to gauge operational expertise.
• Monitor subsequent filings and financial updates to track progress from start-up phase to operational profitability.