Company Number: 13058668

Analysis Date: 2025-07-20 13:30 UTC

1. Risk Rating: MEDIUM
   The company's financial data shows positive net current assets and net assets with no overdue filings, indicating reasonable operational control. However, reliance on director loans and modest cash reserves relative to liabilities suggest some liquidity vulnerability that warrants caution.

2. Key Concerns:

• Liquidity Position: Cash reserves are low (£7,880) compared to current liabilities (£32,162), implying potential short-term cash flow constraints despite positive net current assets.
• Director Loan Dependency: Significant debtor balance (£30,224) represents a director loan which is unsecured, interest-free and repayable on demand; this reliance on director funding could pose a risk if the director cannot or chooses not to advance further funds.
• Limited Asset Base: The company has minimal fixed assets (£0 in 2023) and a small equity base (£5,955), indicating limited financial cushioning against unforeseen expenses or downturns.

3. Positive Indicators:

• Consistent Net Asset Growth: Shareholders' funds increased steadily from £1,777 in 2020 to £5,955 in 2023, showing retained earnings growth and overall business growth.
• No Overdue Filings: The company is current with statutory filings, reflecting good governance and compliance practices.
• Small, Stable Workforce: Maintaining 2 employees including directors suggests a lean operational model with controlled overheads.

4. Due Diligence Notes:

• Verify the nature and terms of the director loan to assess risk exposure and potential calls on liquidity.
• Review cash flow statements (not provided) to understand timing of payments and receipts, particularly whether debtor collections are timely and sustainable.
• Investigate client concentration and revenue trends underlying the business support activities classified under SIC 82990 to gauge operational stability.
• Confirm whether any contingent liabilities or off-balance sheet obligations exist that could affect solvency.
• Assess any director conduct records or regulatory issues beyond filing status.