Company Number: 12741311

Analysis Date: 2025-07-29 12:56 UTC

1. Risk Rating: LOW
   The company demonstrates strong liquidity with a significant cash balance relative to current liabilities and positive net current assets. There are no overdue filings, and the company is active with up-to-date accounts and confirmation statements, indicating good compliance and operational status.

2. Key Concerns:

• Declining net assets and cash reserves over the last two years (from £154,966 in 2023 to £110,100 in 2024), which may warrant investigation into profitability and cash flow trends.
• Minimal share capital (£12) may limit the company’s ability to raise equity finance if required.
• Very low debtor balances with a high cash figure could indicate the company is heavily reliant on immediate cash transactions or prepayments, which may affect future revenue recognition or stability.

3. Positive Indicators:

• Cash resources of £111,439 far exceed current liabilities of £1,783, suggesting strong short-term liquidity and ability to meet obligations.
• No overdue filings or compliance issues; accounts and confirmation statements are timely.
• Low current liabilities and positive net current assets (£109,674) signal good working capital management.
• Directors have maintained consistent accounting policies and the company benefits from exemption from audit, consistent with its size category.
• The company classification as a small private limited company with management consultancy SIC code suggests a low capital-intensive business model.

4. Due Diligence Notes:

• Review the company’s profit and loss account (not filed publicly) to assess the reasons behind the reduction in net assets and cash balances between 2023 and 2024.
• Confirm the sustainability of revenue streams given the very low debtor balances and the nature of management consultancy activities.
• Verify the relationship and roles of the two directors given the shared address and possible related party transactions.
• Assess whether there are any contingent liabilities or off-balance sheet exposures not reflected in the accounts.
• Confirm no director disqualifications or regulatory sanctions given the absence of PSC data and limited public disclosures.