Company Number: 13199441

Analysis Date: 2025-07-29 20:53 UTC

1. Risk Rating: MEDIUM
   The company shows a significant improvement in net current assets and net assets in the latest financial year, which reduces immediate solvency concerns. However, the relatively low share capital and micro-entity status limit the depth of available financial data. The prior year showed negative working capital, indicating past liquidity stress that has since been resolved.

2. Key Concerns:

• Historical liquidity pressure: The company had current liabilities exceeding current assets in the prior financial year, which may indicate previous cash flow difficulties.
• Very low share capital (£99), which may limit the financial buffer available to absorb losses or shocks.
• Limited financial disclosure given micro-entity filings restrict detailed analysis of profitability, cash flows, and contingent liabilities.

3. Positive Indicators:

• Strong recovery in net current assets from negative £3,486 to positive £49,912 between 2023 and 2024, indicating improved short-term liquidity.
• Net assets rose substantially to £57,412, reflecting a healthier balance sheet position.
• Active status with no overdue filings, suggesting compliance with regulatory requirements is being maintained.
• Stable employment level (3 employees) indicating operational continuity.

4. Due Diligence Notes:

• Review management accounts or cash flow statements, if available, to confirm liquidity trends and operational cash generation.
• Investigate reasons for the prior year’s large current liabilities and the source of recent improvements in working capital.
• Assess the nature of current liabilities to evaluate repayment risk and any potential contingent liabilities.
• Confirm absence of any director disqualifications or governance issues beyond the provided data.
• Validate the impact and reason for the company name change in 2022 to understand any strategic repositioning.