Company Number: 14629850

Analysis Date: 2025-07-20 15:47 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits negative net current assets and low cash holdings relative to current liabilities in its first financial year, indicating potential liquidity stress. The total net assets are low, and there is significant reliance on creditor financing, including bank loans and hire purchase agreements. The company is newly incorporated, limiting historical financial performance data.

2. Key Concerns:

• Negative net current assets (£-3,401) suggest an inability to meet short-term obligations without additional financing or asset sales.
• Minimal cash balance (£10) poses immediate liquidity risk for operational needs.
• Reliance on external funding: bank loans and hire purchase contracts total over £8,000, increasing financial leverage and fixed repayment obligations.

3. Positive Indicators:

• The company owns tangible fixed assets valued at £8,689, providing some collateral value.
• Shareholders’ funds are positive (£2,680), reflecting some capital investment.
• No overdue filings or compliance issues noted, indicating good governance and regulatory adherence so far.

4. Due Diligence Notes:

• Review cash flow forecasts and working capital management plans to assess ability to improve liquidity.
• Investigate terms and repayment schedules of bank loans and hire purchase contracts for financial burden and covenants.
• Obtain management accounts or income statement to understand revenue generation and operational profitability.
• Confirm if the company has sufficient credit facilities or capital injection plans to mitigate current liabilities pressure.
• Assess related party transactions given that directors and secretary share ownership and control.