Company Number: 13163999

Analysis Date: 2025-07-20 18:35 UTC

1. Risk Rating: LOW
   The company demonstrates a solid net asset position with positive working capital and no indication of overdue filings or governance issues. Current liabilities are well covered by current assets, and cash balances remain strong, suggesting low solvency and liquidity risk.

2. Key Concerns:

• Declining current assets and cash year-on-year from 2022 to 2023 may warrant monitoring, although still sufficient to cover liabilities.
• Reduction in employee headcount from 5 to 3 could indicate operational scaling back, which may affect business sustainability if it represents loss of capacity.
• Limited disclosure due to abridged accounts and absence of profit & loss details restricts deeper analysis of profitability and cash flow trends.

3. Positive Indicators:

• Net current assets increased from £67,216 in 2022 to £81,675 in 2023, indicating improved short-term financial health.
• No overdue filings for accounts or confirmation statements, indicating good regulatory compliance and governance discipline.
• Shareholders’ funds have increased, reflecting accumulated retained earnings or capital contributions, strengthening the equity base.
• No long-term liabilities or provisions reported, reducing solvency risk from debt burdens.
• Ownership structure includes a controlling entity with full share and voting rights, potentially ensuring stable governance.

4. Due Diligence Notes:

• Obtain detailed profit & loss accounts and cash flow statements to assess operational profitability and cash generation capacity.
• Review debtor aging and credit risk management given the reduction in debtors from £57,155 to £20,834, to ensure receivables quality is maintained.
• Investigate reasons behind the reduction in employee numbers and its impact on business operations.
• Confirm that the controlling shareholder’s influence is aligned with minority investor interests and that governance standards are upheld.
• Verify that no contingent liabilities or off-balance sheet risks exist beyond those disclosed.