Company Number: 13538784

Analysis Date: 2025-07-20 16:48 UTC

1. Risk Rating: LOW

The company exhibits strong net asset positions and current asset coverage relative to liabilities, with no overdue filings or indications of distress. The micro-entity status and exemption from audit are consistent with its size and do not inherently raise concerns.

2. Key Concerns:

• Sharp reduction in current assets from £73,292 (2023) to £47,096 (2024) — a 36% decline warrants investigation into cash flow or operational changes.
• Director loan account fluctuations: the director’s loan moved from a debtor balance of £12,248 at 2023 year-end to a negative balance of £158 by 2024 year-end, indicating repayments exceeding advances; this requires clarification for liquidity impact.
• Very limited scale of operations with only one employee (the director), potentially indicating operational dependency risk.

3. Positive Indicators:

• Positive net current assets in all years, with net assets consistently well above liabilities, demonstrating solvency.
• Up-to-date statutory filings with no overdue accounts or confirmation statements, reflecting good regulatory compliance.
• Ownership and control concentrated in a single director with substantial equity, simplifying governance and decision-making.

4. Due Diligence Notes:

• Examine the reason behind the significant decrease in current assets during the most recent financial year and its impact on liquidity.
• Confirm the nature and terms of the director loan account, especially the unusual repayment pattern and whether it affects cash availability.
• Review business model and revenue streams to assess sustainability given the micro-entity status and minimal staff.
• Verify absence of contingent liabilities or off-balance sheet obligations that could affect financial stability.