Company Number: 13333411

Analysis Date: 2025-07-20 12:21 UTC

1. Risk Rating: MEDIUM
   The company is active and has filed accounts and confirmation statements on time, which is positive. However, there are concerns about financial volatility and low cash balances that indicate potential liquidity stress.

2. Key Concerns:

• Liquidity Issues: Cash at bank is very low (£333 as of April 2024) relative to current liabilities (£5,417), suggesting tight short-term liquidity. Although net current assets are positive (£3,700), this is largely due to debtors, which may not be immediately collectible.
• Volatility in Financial Position: The company’s net assets decreased from £59,278 in 2023 to £23,189 in 2024, indicating significant depletion of reserves in one year without detailed explanation. This raises questions on operational profitability and financial sustainability.
• Employee and Operational Scale: The company reported no employees in the latest year (average zero), down from one previously. This might suggest operational scaling down or reliance on contractors, which could impact business continuity and growth potential.

3. Positive Indicators:

• Timely Compliance: No overdue filings, accounts, or confirmation statements, indicating good regulatory compliance and governance.
• Positive Net Current Assets: Despite low cash, net current assets remain positive, which suggests that short-term obligations could be covered by current assets including receivables.
• Controlled Share Capital and Ownership: Share capital is minimal (£100), and control is clearly held by a single individual with no disqualifications, reducing governance complexity.

4. Due Diligence Notes:

• Investigate the reason for the sharp decline in net assets and profit and loss reserves between 2023 and 2024 to understand operational or financial deterioration.
• Assess the collectibility of debtors and the timing of cash inflows to verify liquidity adequacy.
• Clarify business model changes, especially the reduction in staff/headcount and its impact on operations and revenue generation.
• Review any contingent liabilities or off-balance sheet commitments that might affect solvency not reflected in the accounts.