Company Number: 12582378

Analysis Date: 2025-07-20 16:29 UTC

1. Risk Rating: MEDIUM
   The company demonstrates modest net assets and a positive net working capital position, but there is a notable increase in current liabilities in the latest financial year that may indicate rising short-term obligations. Cash balances remain positive but relatively low, and the company operates with only one employee (the director), which may impact operational resilience.

2. Key Concerns:

• Rising Current Liabilities: Current liabilities nearly tripled from £5,894 in 2023 to £15,970 in 2024, which could affect liquidity if not matched by corresponding asset growth or cash inflows.
• Minimal Share Capital and Single Director Operation: The company has only £10 share capital and a single director/employee, which may limit governance oversight and operational capacity.
• Concentration of Control: The sole director and 75-100% shareholder raises potential governance risk due to lack of independent oversight.

3. Positive Indicators:

• Positive Net Assets: The company maintains positive net assets (£12,624 as of 2024), indicating solvency on a balance sheet basis.
• Improved Cash Position: Cash increased from £19,303 in 2023 to £28,594 in 2024, supporting short-term liquidity.
• No Overdue Filings and Active Status: The company is active with all statutory filings up to date, reducing regulatory compliance risk.

4. Due Diligence Notes:

• Examine Nature of Increased Creditors: Investigate the cause of the marked rise in current liabilities, particularly the "other creditors" category which increased significantly.
• Assess Cash Flow Trends: Review cash flow statements and working capital cycles to confirm the company can meet its short-term obligations comfortably.
• Governance Review: Consider the implications of single-person control on risk management and decision-making processes.
• Revenue and Profitability Data: As profit and loss details are not publicly filed, obtain financial performance data to assess operational sustainability.