Company Number: 12924593

Analysis Date: 2025-07-20 13:21 UTC

1. Risk Rating: MEDIUM
   The company maintains positive net current assets and shareholders' funds, indicating solvency. However, the small scale of operations, low cash balances relative to current liabilities, and limited equity base elevate liquidity and operational risks.

2. Key Concerns:

• Liquidity Risk: Cash on hand (£838) is very low compared to current liabilities (£7,083) as of the latest accounts, which could constrain the company’s ability to meet short-term obligations promptly.
• Small Scale and Limited Capital: Share capital is minimal (£2), and shareholders’ funds stand at just £3,055, suggesting limited financial buffer and potential difficulties in scaling or absorbing operational shocks.
• Concentration of Control and Director Changes: One individual holds 75-100% shares and voting rights, which may increase governance risk. Also, a director resigned within the last two years, which could indicate management instability.

3. Positive Indicators:

• Consistent Positive Net Current Assets: The company has maintained positive net current assets over the last four years, showing some ability to cover short-term liabilities.
• On-Time Filing Compliance: Both accounts and confirmation statements are up to date with no overdue filings, reflecting regulatory compliance and good administrative management.
• Stable Employment: The company employed on average one person consistently, indicating operational continuity at a small scale.

4. Due Diligence Notes:

• Clarify the nature and timing of trade creditors and director’s account balances to understand cash flow cycles and any related party transactions.
• Review the company’s cash flow statements and turnover figures (not provided) for a clearer picture of operational liquidity and revenue generation.
• Investigate the reasons for director resignation and assess any impact on governance or strategy.
• Confirm the reliability and sustainability of the business model given the small workforce and limited capital base.
• Assess whether the company holds any contingent liabilities or off-balance sheet obligations not evident in the filleted accounts.