Company Number: 13910943

Analysis Date: 2025-07-20 17:00 UTC

1. Risk Rating: MEDIUM
   The company shows some signs of financial strain, particularly on liquidity, but also some recovery in net assets. The micro-entity scale limits complexity and risk but the current liabilities exceeding current assets in 2024 is concerning.

2. Key Concerns:

• Liquidity Shortfall: As at 28-Feb-2024, current liabilities (£48,182) significantly exceed current assets (£37,661), resulting in negative net current assets of -£10,521. This indicates potential short-term cash flow difficulties.
• Unclear Creditor Terms: The previous year (2023) shows a large creditor balance after one year (£11,500) that disappears in 2024, while short-term creditors surge. The reasons for this shift should be clarified (e.g., creditor restructuring or repayment).
• Small Scale with Limited Financial Cushion: As a micro-entity with only 3 employees and modest asset base (£6,563 net assets), the company has limited financial flexibility to absorb shocks or invest in growth.

3. Positive Indicators:

• Net Asset Recovery: Net assets improved from negative (-£997) in 2023 to positive (£6,563) in 2024, indicating some strengthening of the balance sheet.
• No Overdue Filings: Both accounts and confirmation statements are filed on time, suggesting good compliance with regulatory requirements.
• Single Controlling Director with Full Ownership: Clear ownership and control by a single director may facilitate swift decision-making and oversight.

4. Due Diligence Notes:

• Investigate the nature and terms of current liabilities that caused the liquidity imbalance in 2024, including any loans, trade creditors, or accrued expenses.
• Confirm cash flow management practices and assess whether the company has access to external financing if needed.
• Review any off-balance sheet arrangements or contingent liabilities not disclosed in micro-entity accounts.
• Clarify the reason behind the disappearance of long-term creditors from 2023 to 2024 and the corresponding increase in short-term liabilities.
• Assess the sustainability of operations given the small scale and limited asset base, including market position and revenue trends (not available here).