Company Number: 14470317

Analysis Date: 2025-07-20 11:44 UTC

1. Risk Rating: MEDIUM
   The company shows a very narrow working capital position with net current assets of only £6 at the latest year end and a modest positive net asset figure of £2,238. While it is not insolvent, the minimal buffer against liabilities and low cash balance raise some solvency and liquidity concerns typical of a very young company still developing operational stability.

2. Key Concerns:

• Tight Liquidity: Current liabilities (£18,714) nearly equal current assets (£18,720) leaving negligible working capital, and cash on hand is a low £5,896. This could constrain the company’s ability to meet short-term payables comfortably.
• Rapid Increase in Creditors: Current liabilities have risen from £4,745 to £18,714 in one year, mainly due to taxation and social security creditors (£12,758), indicating possible cash flow or tax payment timing issues.
• Lack of Revenue/Profit Disclosure: The absence of an income statement due to small company exemptions limits visibility into operational performance and profitability, making it difficult to assess sustainability.

3. Positive Indicators:

• Compliance and Timely Filings: Accounts and confirmation statements are filed on time with no overdue filings or penalties, indicating good regulatory compliance.
• Ownership and Control Stability: The two directors also hold significant control and have provided advances to the company (£6,071 each), suggesting committed ownership support.
• Tangible Fixed Assets: The company holds tangible fixed assets (£2,232 net book value), which may provide some operational foundation or collateral support.

4. Due Diligence Notes:

• Verify the nature and timing of the substantial increase in taxation and social security creditors to understand potential cash flow risks or HMRC disputes.
• Obtain or request internal management accounts or an income statement to assess revenue generation, gross margins, and profitability trends.
• Investigate the company’s business model and client contracts to evaluate operational sustainability given the lack of employees and minimal financial buffers.
• Clarify the extent and terms of directors’ loans to the company and repayment plans to understand reliance on owner funding.