Company Number: 13358438

Analysis Date: 2025-07-29 19:24 UTC

1. Risk Rating: MEDIUM
   The company demonstrates positive net current assets and modest net assets, indicating some solvency. However, the narrow margin between current assets and liabilities and limited cash reserves suggest potential liquidity constraints. The small scale of the business and limited equity raise concerns about operational resilience.

2. Key Concerns:

• Liquidity Pressure: Cash at bank is relatively low (£5,716) compared to current liabilities (£23,900), indicating tight short-term liquidity that could affect the ability to meet obligations promptly.
• Minimal Equity and Capitalization: Share capital stands at only £1, with total shareholders' funds of £316, which implies limited financial buffer to absorb losses or fund growth.
• Operational Scale and Dependency: The company has only one employee, the director, indicating a reliance on a single individual for operational continuity and possible challenges in scaling or managing risks effectively.

3. Positive Indicators:

• Timely Filing and Compliance: Accounts and confirmation statements are up to date with no overdue filings, reflecting good regulatory compliance and governance.
• Consistent Net Current Assets: Despite tight liquidity, the company has maintained positive net current assets over consecutive years, showing stable working capital management.
• Established Trading Activity: Debtors have increased significantly to £18,500 in 2025, suggesting active business operations and potentially growing client engagements or sales.

4. Due Diligence Notes:

• Cash Flow Analysis: Investigate detailed cash flow statements to assess the company's ability to convert receivables into cash and meet short-term liabilities.
• Client Concentration and Debtor Quality: Review the nature and reliability of debtors to evaluate credit risk and potential for cash collection delays.
• Business Model Sustainability: Understand the revenue streams in management consultancy and catering activities, assessing market position, competitive advantage, and growth prospects.
• Director Background and Governance: Confirm the director’s track record and any related party transactions to evaluate governance and operational risks.
• Website and Market Presence: The website domain shows "Account Suspended," which may affect brand reputation and client acquisition; further inquiry into digital presence and marketing strategy is recommended.