Company Number: 12604912

Analysis Date: 2025-07-20 13:12 UTC

1. Risk Rating: MEDIUM
   The company is currently active with up-to-date filings and no overdue returns. However, the micro-entity scale, low net assets, and presence of long-term liabilities raise moderate concerns about solvency and operational stability.

2. Key Concerns:

• The company shows minimal equity (£861) despite having fixed assets of £14,000 offset by equivalent long-term liabilities (£14,000), implying leveraged asset acquisition or financing that could pressure solvency if cash flows falter.
• Current assets (£1,461) barely exceed short-term creditors (£600), indicating limited liquidity buffers to cover immediate obligations.
• The business has only one employee (the director) and very limited operating scale, which may challenge sustainability and growth potential.

3. Positive Indicators:

• The company has maintained timely filings with Companies House and is compliant with statutory reporting requirements, indicating good regulatory compliance and governance discipline.
• The sole director and shareholder, Mr Abbas Khan, holds full control and appears stable in role since incorporation, which may contribute to consistent management oversight.
• The company has acquired fixed assets, suggesting some level of investment in operational capacity.

4. Due Diligence Notes:

• Investigate the nature and terms of the £14,000 long-term liabilities to understand financing structure, repayment schedule, and any covenants that may impact financial stability.
• Review cash flow statements or management accounts (if available) to assess operational cash generation and ability to service current and long-term liabilities.
• Confirm business model viability and revenue streams given the micro scale and single employee setup, including client base, contracts, and market position.
• Verify no director disqualifications or legal disputes related to Mr Abbas Khan to ensure governance reliability.
• Assess any contingent liabilities or off-balance-sheet exposures not reflected in the micro-entity accounts.