Company Number: 13798926

Analysis Date: 2025-07-29 17:15 UTC

1. Risk Rating: MEDIUM
   The company shows improving solvency and positive net asset growth but has relatively low absolute cash and current assets compared to liabilities. The financial data reflects a small scale operation with modest working capital and some director loans, suggesting moderate risk in meeting obligations under stress.

2. Key Concerns:

• Liquidity tightness: Although net current assets improved to a positive £2,392 in 2023 from negative in prior years, current liabilities (£24,327) remain high relative to current assets (£26,719), leaving a narrow margin.
• Director loan exposure: £4,399 owed to the director may indicate reliance on related party financing, which could be a risk if informal or unsecured.
• Limited scale and single employee: Small size and single staff member may limit operational resilience and scalability, increasing vulnerability to business interruptions.

3. Positive Indicators:

• Significant improvement in net assets from £828 (2022) to £13,184 (2023) reflecting likely profitability or capital injection.
• Positive net current assets in the latest year show improved liquidity management.
• No overdue filings and current status as Active confirm regulatory compliance and good governance on statutory matters.
• Ownership and control are transparent, with PSCs identified and no director disqualifications noted.

4. Due Diligence Notes:

• Review the nature and terms of director loan (£4,399) to assess risk and repayment capacity.
• Confirm cash flow sufficiency given the tight working capital situation and assess operating cycle cash conversion.
• Analyze turnover and profitability trends (not provided) to gauge sustainability beyond balance sheet strength.
• Investigate fixed asset utilization given significant tangible assets relative to company size to understand capital efficiency.
• Verify any contingent liabilities or off-balance-sheet risks not disclosed in the accounts.