Company Number: 14208939

Analysis Date: 2025-07-29 12:24 UTC

1. Risk Rating: MEDIUM

The company is newly incorporated (2022) and currently classified as dormant with minimal financial activity. However, recent financials show a turnaround from net liabilities to a small positive net asset position, indicating some improvement. The scale and duration of operations remain limited, which constrains the financial robustness and operational track record.

2. Key Concerns:

• Negative Net Assets and Liabilities in Prior Period: As of July 2023, the company reported net liabilities of £1,464, which raises initial solvency concerns despite improvement by December 2023.
• Limited Operational History and Scale: Dormant status and micro-entity classification with only one employee limit insight into sustainable business operations and cash flow generation.
• Small Working Capital Buffer: Current net assets of £625 are minimal, implying tight liquidity with little margin for unexpected expenses or delays in receivables.

3. Positive Indicators:

• Recent Positive Net Asset Position: The December 2023 accounts show a modest improvement to positive net assets and net current assets, indicating some financial stabilization.
• No Filing Overdue: Both accounts and confirmation statements are up to date, reflecting good compliance and governance standards.
• Single Director with No Known Disqualifications: The sole director is listed with no adverse records, suggesting stable management oversight.

4. Due Diligence Notes:

• Investigate the nature and source of the positive current assets (£5,843) and their collectability.
• Review the reasons behind the prior period net liabilities and the steps taken to address them.
• Confirm business activity beyond dormant status, including contracts or revenue streams, to assess operational sustainability.
• Monitor cash flow forecasts and any off-balance sheet liabilities or contingent risks not disclosed.
• Assess the director’s plans and financial backing to support the company’s growth and solvency.