Company Number: OC442229

Analysis Date: 2025-07-29 18:29 UTC

1. Risk Rating: MEDIUM
   The company's financials show modest net assets and positive working capital, which is encouraging for a micro-entity. However, the negative members' interests (equity) and relatively low current asset base highlight a moderate risk concerning capital adequacy and solvency. The company is still in its early years, limiting the depth of financial history available for analysis.

2. Key Concerns:

• Negative members' interests (equity) of -£1,000 as of 2024, though improved from -£2,284 previously, indicate accumulated losses or capital deficits.
• The company relies on loans and debts due to members (£4,002), which could indicate dependence on member funding rather than operational cash flow.
• Small scale of operations (only 2 employees) and limited current assets (£6,710) may constrain liquidity and operational flexibility in adverse conditions.

3. Positive Indicators:

• Positive net current assets (£6,710) suggest the company can meet short-term liabilities without immediate financial stress.
• Timely filing of accounts and confirmation statements within deadlines indicates good regulatory compliance and governance.
• Steady increase in net assets from £1,718 in 2023 to £3,002 in 2024, showing some improvement in financial position.

4. Due Diligence Notes:

• Investigate the nature and terms of the loans and debts due to members to understand financial obligations and potential risks.
• Review detailed profit and loss statements to assess operational profitability and cash flow trends, which are not provided here.
• Consider the business model sustainability and market position given the small scale and recent incorporation (2022).