Company Number: 13276302

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

1. Risk Rating: MEDIUM

The company shows a significant decline in net assets from £10,346 in 2023 to £280 in 2024, indicating potential solvency concerns. However, it remains an active private limited company with no overdue filings, which mitigates immediate regulatory risk. The micro-entity status limits the depth of financial disclosures.

2. Key Concerns:

• Sharp Decline in Net Assets: The reduction from £10,346 to £280 within one year is material and suggests losses or distributions that may affect the company's ability to meet obligations.
• Decreasing Current Assets and Net Current Assets: Current assets halved from £19,151 to £9,554, and net current assets fell from £11,430 to £1,670, indicating potential liquidity tightening.
• Minimal Share Capital: With only £100 share capital and limited fixed assets (£50), the company has a low equity buffer to absorb financial shocks.

3. Positive Indicators:

• Timely Filings: Accounts and confirmation statements are up to date with no overdue filings, reflecting good compliance discipline.
• Active Status: The company is active and not undergoing liquidation or administration.
• Stable Management: Directors have been consistent since incorporation, and there are no disqualifications reported.
• Micro-Entity Reporting: Compliance with micro-entity reporting indicates a simple, low-cost structure suitable for small operations.

4. Due Diligence Notes:

• Profit and Loss Details: Review the full P&L statement and notes to understand the cause of the net assets decline—whether operational losses, distributions, or other factors.
• Cash Flow Analysis: Investigate cash flow trends over the last two years to assess liquidity sustainability.
• Related Party Transactions: Considering the directors are also significant shareholders, verify any related party transactions or loans that may impact financial stability.
• Business Model and Market Position: Obtain information on revenue streams and client base given the SIC code (other business support services).
• Future Outlook: Directors' strategic report or management commentary is missing; seek management insights on plans to restore financial strength.