Company Number: 14355601

Analysis Date: 2025-07-20 15:10 UTC

1. Risk Rating: LOW
   The company shows a positive net asset position with improving shareholder funds and no overdue filings. The liquidity position is stable with a significant increase in cash holdings by the end of the latest financial year. The company is active, compliant with filing deadlines, and has no indication of insolvency or regulatory issues.

2. Key Concerns:

• Negative net current assets (working capital) reported at £-4,754 in 2024, indicating current liabilities exceed current assets, which could signal short-term liquidity pressure despite strong cash balances.
• Debtors have decreased significantly from £6,746 in 2023 to £1,740 in 2024, which merits investigation to understand if this represents improved collections or loss of business.
• Limited employee base (average 2 employees) and relatively small scale of operations may constrain operational resilience and growth potential.

3. Positive Indicators:

• Strong increase in cash from £14,067 in 2023 to £30,533 in 2024, which improves short-term liquidity and ability to meet obligations.
• Net assets and shareholders' funds increased substantially from £476 in 2023 to £20,482 in 2024, indicating retained earnings growth and capital strengthening.
• The company is fully up to date with statutory filings and accounts, demonstrating good regulatory compliance and governance.
• Tangible fixed assets are maintained and growing, reflecting investment in operational capacity.

4. Due Diligence Notes:

• Review detailed cash flow statements (if available) to confirm the sustainability of cash generation and assess timing of liabilities.
• Investigate reasons behind the decrease in debtor balances and confirm the quality and collectability of receivables.
• Confirm the nature and maturity of current liabilities to assess liquidity risk given negative net current assets.
• Consider the impact of limited staffing on business continuity and operational risks.
• Verify no related party transactions or director loans that may affect financial stability.
• Monitor for any director conduct risks, though none are apparent from provided data.