Company Number: 15161401

Analysis Date: 2025-07-20 18:56 UTC

1. Risk Rating: HIGH
   The company exhibits a high risk profile primarily due to its net current liabilities position, negative net assets, and significant creditor balances relative to current assets. As a newly incorporated entity with limited financial history, the financial position indicates solvency and liquidity challenges.

2. Key Concerns:

• Negative Net Current Assets: The company’s current liabilities (£65,061) exceed current assets (£53,137) by £11,924, indicating potential short-term liquidity issues to meet obligations as they fall due.
• Negative Net Assets and Shareholders’ Deficit: Net liabilities stand at £11,307, reflecting accumulated losses or funding shortfalls within the first year of trading. This raises concerns about the company’s capital adequacy and solvency.
• Concentration of Creditors: Other creditors constitute a large portion (£61,253) of current liabilities, suggesting reliance on possibly unsecured or related party funding that may be subject to repayment risk or creditor pressure.

3. Positive Indicators:

• Compliance with Filing Requirements: The company has filed accounts and confirmation statements on time, indicating adherence to regulatory obligations and good governance practices.
• Clear Ownership and Governance: The directors and persons with significant control are identified, with no indications of disqualifications or governance issues.
• Inventory Holding: Stock valued at £46,776 suggests the company has tangible assets that could potentially be converted into cash if necessary, although the valuation and liquidity of stock should be assessed.

4. Due Diligence Notes:

• Investigate the nature and terms of the "Other creditors" balance of £61,253 to assess repayment obligations, related party transactions, or potential contingent liabilities.
• Review cash flow projections and working capital management plans to understand how the company intends to address the negative net current assets and fund ongoing operations.
• Evaluate the valuation and realisability of the stock, considering potential impairments, obsolete inventory, or slow-moving goods.
• Confirm the company’s business model, revenue generation capacity, and market positioning within the “Other human health activities” SIC code to assess operational sustainability.
• Monitor future financial statements to identify trends in profitability, liquidity, and solvency as the company matures.