Company Number: 13437759

Analysis Date: 2025-07-29 16:57 UTC

1. Risk Rating: LOW to MEDIUM
   The company demonstrates a positive net asset position and improved working capital in the latest financial year. However, the presence of medium-term liabilities and limited equity capital warrants cautious monitoring.

2. Key Concerns:

• Medium-term liabilities (£7,000) appearing in 2024: Introduction of liabilities falling due after more than one year could represent debt that may stress cash flows if not managed prudently.
• Low share capital (£1.00): Minimal equity base may limit financial flexibility and capacity to absorb losses or raise capital.
• Limited scale with one employee and micro-entity status: Small operational size could affect business sustainability and resilience to market or operational shocks.

3. Positive Indicators:

• Consistent growth in net assets from £2,288 in 2021 to £19,536 in 2024 indicates improving financial strength.
• Strong improvement in net current assets from a deficit position (£7,844 negative) in 2023 to positive (£9,791) in 2024 suggests improved liquidity management.
• No overdue filings or compliance issues show good regulatory discipline.
• Stable directorship with a single director engaged full-time in the core trade suggests operational focus.

4. Due Diligence Notes:

• Clarify nature, terms, and security of the £7,000 medium-term liabilities recorded in 2024 accounts.
• Review cash flow statements if available to confirm liquidity trends beyond balance sheet snapshots.
• Investigate customer concentration and revenue stability given the small scale of operations.
• Confirm absence of contingent liabilities or off-balance-sheet obligations that might affect solvency.
• Monitor director’s background and any related party transactions, especially given the sole director status.