Company Number: 13574354

Analysis Date: 2025-07-29 17:08 UTC

1. Risk Rating: MEDIUM
   The company has shown a significant turnaround from negative shareholders' funds and net current liabilities in 2023 to positive equity and net current assets in 2024. However, the absolute values remain modest and cash levels are low, indicating a moderate risk profile.

2. Key Concerns:

• Prior Year Negative Equity and Liquidity Stress: In 2023, the company reported substantial current liabilities (£67,295) far exceeding current assets (£55,912), resulting in negative net current assets (-£11,383) and negative shareholders' funds (-£9,840). This indicates prior financial distress.
• Low Cash Reserves: Despite improvement, cash at bank is only £3,908 as of 2024, which is relatively low and may affect the company’s ability to meet short-term obligations promptly.
• Concentration Risk: The company's debtors are minimal (£70) and appear to be amounts due from the parent company, indicating potential dependence on related party transactions rather than diversified client revenue streams.

3. Positive Indicators:

• Improved Financial Position: The 2024 accounts show a significant recovery with net current assets of £1,463 and positive shareholders' funds of £2,620, suggesting the company is moving towards financial stability.
• No Overdue Filings: Both accounts and confirmation statement filings are up to date, indicating good compliance with statutory requirements.
• Stable Management and Governance: There is no indication of director disqualifications or governance issues; the company is active and managed by multiple directors.

4. Due Diligence Notes:

• Investigate the Causes and Sustainability of Financial Turnaround: Review the underlying reasons for the dramatic improvement from 2023 to 2024, focusing on cash flow generation, creditor payment terms, and whether the improvement is sustainable.
• Assess Related Party Transactions: Examine the nature and terms of transactions with the parent company (£70 debtor balance) to evaluate any potential risks or dependencies.
• Review Operational Performance and Revenue Streams: Since detailed profit and loss data is not filed publicly, request management accounts or further financial disclosures to assess profitability, revenue diversity, and operational stability.
• Confirm No Contingent Liabilities or Off-Balance Sheet Risks: Verify if there are any contingent liabilities or off-balance sheet obligations that may affect solvency.