Company Number: 12786035

Analysis Date: 2025-07-19 12:06 UTC

1. Risk Rating: MEDIUM
   The company shows a positive net asset position and a significant improvement in net current assets from prior years, indicating some progress in financial health. However, the high level of current liabilities relative to current assets and the large debtor balance present liquidity risks. The absence of audit and limited disclosure reduces transparency, which adds to risk assessment uncertainties.

2. Key Concerns:

• Liquidity Risk: Current liabilities (£1.19M) remain high relative to current assets (£1.29M) with a modest net current asset buffer (£105k), but a sizable portion of current assets is tied up in debtors (£1.07M), which may not be readily convertible to cash.
• Debtor Concentration and Collection Risk: Trade and other debtors total over £1 million, a substantial portion of current assets. The significant reduction in debtors from prior year suggests collection issues or write-offs, requiring further investigation.
• Lack of Audit and Limited Financial Detail: The company qualifies for exemption from audit and has not provided a profit and loss account with the filing, limiting insight into operational profitability and cash flow, which constrains comprehensive risk evaluation.

3. Positive Indicators:

• Improved Net Asset Position: Shareholders' funds increased significantly from £9,467 in 2023 to £105,914 in 2024, reflecting improved retained earnings or capital injection.
• Compliance with Filing Deadlines: The company is current on accounts and confirmation statement filings, indicating sound regulatory compliance.
• Stable Management Team: Directors have been in place since incorporation with no indications of disqualifications or governance issues.

4. Due Diligence Notes:

• Investigate the aging and collectability of trade debtors to assess liquidity risk properly.
• Review underlying profit and loss performance and cash flow statements not filed to evaluate operational sustainability.
• Confirm reasons for significant fluctuations in debtors and creditors year-on-year.
• Assess the adequacy of provisions and contingent liabilities beyond deferred tax (£262).
• Clarify any related party transactions or director loans impacting financial stability.