Company Number: 13990180

Analysis Date: 2025-07-20 11:14 UTC

1. Risk Rating: MEDIUM
   The company shows a moderate level of solvency risk primarily due to significant long-term liabilities which reduce net assets to a low figure. However, it remains active with timely filings and a growing asset base.

2. Key Concerns:

• The company has substantial long-term creditors (£233,852) relative to total assets, which raises concerns about its ability to meet these obligations without additional financing or asset sales.
• Net assets are low (£8,519 as of March 2025), indicating limited equity buffer and potential vulnerability to adverse financial events.
• The company is very small (micro-entity) with only one employee and limited operational scale, which may impact business sustainability and cash flow generation.

3. Positive Indicators:

• The company has maintained current liabilities at manageable levels compared to current assets, resulting in positive net current assets (£14,541). This suggests reasonable short-term liquidity.
• Filing records are up to date with no overdue accounts or confirmation statements, indicating good regulatory compliance.
• There is a clear ownership and management structure with identified persons of significant control, reducing governance uncertainty.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors to assess repayment schedules, interest rates, and any covenants that could impact solvency.
• Review underlying business operations and revenue streams to understand how the company plans to manage and reduce the long-term liabilities.
• Confirm the accuracy and valuation of fixed assets (£228,782) to assess if they can be leveraged or sold if needed to improve financial stability.
• Examine any contingent liabilities or provisions beyond the £952 disclosed to gauge off-balance sheet risks.
• Consider the impact of having only one employee on operational continuity and business scalability.