Company Number: 15162796

Analysis Date: 2025-07-20 18:46 UTC

1. Risk Rating: HIGH
   The company exhibits significant negative net assets and net current liabilities within its first year, indicating immediate solvency risk.

2. Key Concerns:

• Negative Net Assets and Working Capital: The balance sheet shows net liabilities of £6,988 and net current liabilities of £6,268, signaling that current liabilities substantially exceed current assets, which is a critical solvency and liquidity concern.
• Limited Operational Scale and Resources: With only one employee (the director) and minimal current assets (£473), the company may lack operational capacity and financial buffers to sustain activities or cover obligations.
• Early Stage with Negative Equity: Incorporated less than a year ago, the company’s cumulative losses or initial funding shortfall have resulted in negative shareholders' funds, which raises questions about capital adequacy and ongoing financial support.

3. Positive Indicators:

• Compliance with Filing Requirements: The company’s accounts and confirmation statement filings are up to date and not overdue, indicating a baseline level of regulatory compliance and governance discipline.
• Clear Ownership and Control: A single director and sole shareholder structure simplifies decision-making and accountability.
• Micro-Entity Filing Status: The company benefits from simplified reporting and reduced administrative burden, appropriate for its size.

4. Due Diligence Notes:

• Investigate the nature and terms of current liabilities amounting to £6,741 to assess repayment risk and creditor relationships.
• Review the initial capital injection and shareholder funding plans to understand how the negative equity arose and if additional funding is planned.
• Confirm the business plan and revenue generation prospects to evaluate future operational sustainability.
• Verify if there are any contingent liabilities or off-balance-sheet obligations not disclosed in the micro-entity accounts.
• Assess director’s track record and whether there are any external guarantees or financial support arrangements in place.