Company Number: 13060706

Analysis Date: 2025-07-29 13:23 UTC

1. Risk Rating: MEDIUM
   The company shows signs of improving financial stability with positive net assets and net current assets in the latest year. However, the presence of long-term liabilities and relatively low cash balances compared to liabilities indicate some solvency and liquidity risk that warrants close monitoring.

2. Key Concerns:

• Long-Term Liabilities: The company reported £19,130 in creditors due after more than one year as of 2024, which is a new development compared to prior years and may pressure future cash flows.
• Modest Working Capital: Although net current assets improved to £3,528 in 2024, this remains a thin buffer against short-term obligations (£48,559 current liabilities vs £52,087 current assets), leaving limited liquidity headroom.
• Small Scale and Limited Capital: The company is micro-entity sized with minimal share capital (£2) and only three employees, potentially limiting operational resilience and access to external funding.

3. Positive Indicators:

• Improving Asset Base: Fixed assets more than doubled from £15,429 in 2023 to £33,156 in 2024, indicating potential investment in operational capacity or equipment.
• Positive Shareholders’ Funds: Shareholders’ funds increased slightly to £16,894 in 2024, showing retained equity and no indication of depletion.
• Timely Filings: No overdue accounts or confirmation statements, reflecting compliance with regulatory deadlines and good governance practices.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors (£19,130) to assess repayment schedule and covenant risks.
• Review cash flow statements to confirm liquidity adequacy and operational cash generation, since current assets are only marginally above current liabilities.
• Assess business model sustainability given the micro entity size and limited employee base, including customer concentration and market position.
• Validate the director’s advances and dividends (noted £12,500 paid to Mr. Fairbrother in 2024) for potential related party transactions affecting cash flow.
• Confirm no director disqualifications or legal issues affecting governance integrity.