Company Number: 12735187

Analysis Date: 2025-07-20 11:52 UTC

1. Risk Rating: MEDIUM
   The company shows modest net asset growth and maintains positive net assets, but the significant increase in current liabilities relative to current assets in 2024 poses liquidity concerns. The micro-entity status limits disclosure detail, restricting a comprehensive risk assessment.

2. Key Concerns:

• Liquidity imbalance: Current liabilities (£82,563) exceed current assets (£36,219) by a substantial margin in 2024, indicating potential short-term cash flow pressure.
• Reliance on fixed assets: Sharp increase in fixed assets from £21,500 to £58,400 may signal capital expenditure that could strain cash resources if not well managed.
• Limited financial history: Only 4 years of financial data with small scale and micro-entity reporting reduces transparency and insight into operational sustainability and profitability.

3. Positive Indicators:

• Positive net assets: Company maintains positive net assets (£12,056), indicating solvency on a balance sheet basis.
• No overdue filings: Accounts and confirmation statements are up to date, reflecting compliance with regulatory requirements.
• Stable employee base: Consistent average of 2 employees suggests operational continuity without rapid cost escalation.

4. Due Diligence Notes:

• Investigate nature of fixed asset increase in 2024 to assess if these are productive assets generating returns or potentially illiquid investments.
• Review cash flow statements (if available) to evaluate working capital management and ability to meet short-term obligations given the current liability pressure.
• Assess revenue and profitability trends, as micro-entity accounts do not disclose profit and loss details; profitability is key to sustainability.
• Confirm absence of contingent liabilities or off-balance sheet risks that may impact solvency.
• Verify director background and governance practices given sole director status for potential concentration risk.