Company Number: 12814834

Analysis Date: 2025-07-19 12:32 UTC

1. Risk Rating: MEDIUM
   The company shows a consistent pattern of net current liabilities and negative net working capital over multiple years, which indicates potential liquidity challenges. However, the positive trend in net assets and shareholder funds, albeit small, suggests some improvement in overall solvency.

2. Key Concerns:

• Persistent negative net current assets: Each year, current liabilities exceed current assets by approximately £4,000, which could signal difficulty in meeting short-term obligations promptly.
• Very low share capital (£1.00) and modest net assets (£2,646 in 2024) suggest limited equity buffer to absorb operational or financial shocks.
• The absence of detailed profit and loss information (accounts prepared under micro-entity exemption, no profit & loss filed) limits insight into profitability and cash flow generation.

3. Positive Indicators:

• The company is active, with no overdue filings or indications of regulatory non-compliance.
• Net assets have improved from £281 in 2021 to £2,646 in 2024, indicating a gradual strengthening of financial position.
• The business has increased its number of employees from 1 to 3 on average, implying operational growth or scaling.
• No signs of liquidation, administration, or director disqualifications.

4. Due Diligence Notes:

• Request detailed management accounts and cash flow statements to assess operational cash generation and liquidity management.
• Investigate the nature and terms of current liabilities to understand if they are short-term trade payables or more onerous debts.
• Clarify the company’s revenue trend and profitability since the P&L is not publicly filed.
• Confirm the identity and control structure since no Persons with Significant Control are listed, which might affect governance transparency.