Company Number: 13992737

Analysis Date: 2025-07-20 16:58 UTC

1. Risk Rating: MEDIUM
   Justification: The company is very young (incorporated 2022) and operates at a micro scale with very limited net current assets and shareholders' funds (£392 as of March 2025). While it remains compliant with filing requirements and is not in liquidation, the minimal working capital and sharp decline in net assets over three years indicate potential solvency and liquidity risks.

2. Key Concerns:

• Diminishing Net Current Assets: From £14,542 in 2022 to just £392 in 2025, the company's working capital has eroded significantly, raising concerns about its ability to meet short-term obligations.
• Limited Scale and Resources: Micro-entity status with only one employee and minimal financial resources suggests vulnerability to operational disruptions or unexpected expenses.
• Single Director and Sole Control: Miss Hannah Wilson controls 75-100% of shares and voting rights, concentrating decision-making and increasing governance risk if continuity is affected.

3. Positive Indicators:

• Timely Compliance: No overdue accounts or confirmation statements, which reflects good regulatory compliance and governance practices.
• No Indication of Insolvency: The company is active, not in liquidation or administration, suggesting ongoing business operations.
• Clear Industry Focus: Classified under SIC 88100 (Social work activities without accommodation), a sector that may benefit from steady demand and possible public funding.

4. Due Diligence Notes:

• Verify the nature and sustainability of the company's revenue streams given the rapid depletion of net current assets.
• Investigate any related party transactions or director loans that might not be reflected in the balance sheet.
• Review detailed cash flow statements if available to assess liquidity trends and timing of receivables/payables.
• Understand management plans for improving financial stability or capital injection.
• Confirm absence of contingent liabilities or off-balance-sheet obligations.