Company Number: 13345886

Analysis Date: 2025-07-29 18:13 UTC

1. Risk Rating: MEDIUM
   The company demonstrates positive growth in net assets and net current assets over two years, indicating some financial improvement. However, the reliance on factoring secured against trade debtors and relatively low cash balances introduce liquidity risks. The absence of an audit and limited financial disclosure reduces transparency, increasing uncertainty.

2. Key Concerns:

• Liquidity Risk: Cash at bank is low (£22,339) compared to current liabilities (£362,002), suggesting potential cash flow pressures despite positive net current assets. Heavy reliance on factoring (£112,657 secured against trade debtors) may constrain operational flexibility.
• Credit Risk on Debtors: Trade and other debtors increased significantly to £447,227, representing the bulk of current assets. There is no indication of the aging of these receivables or provision for bad debts, which could impact realizability.
• Limited Financial Transparency: The company is exempt from audit and has not included a profit and loss account in the filing. This restricts insight into profitability, cash flow generation, and operational performance, limiting comprehensive risk assessment.

3. Positive Indicators:

• Improved Net Assets: Net assets increased from £15,717 in 2023 to £110,009 in 2024, reflecting growth and retention of earnings or capital injection.
• Compliance with Filing Requirements: Accounts and confirmation statements are filed on time, indicating regulatory compliance and governance discipline.
• Stable Board and Control: No director disqualifications noted; key directors and significant controllers are established and resident in the UK, facilitating accountability.

4. Due Diligence Notes:

• Review detailed debtor aging and impairment policies to assess collectability risks and impact on liquidity.
• Obtain management accounts or cash flow forecasts to evaluate cash generation and working capital management.
• Investigate the terms and conditions of factoring arrangements and any covenants or restrictions imposed by the finance provider.
• Clarify reasons for audit exemption and consider commissioning an independent financial review or audit for enhanced assurance.
• Assess profitability and expense trends through internal management information, given absence of published profit and loss statements.