Company Number: 13106949

Analysis Date: 2025-07-20 12:13 UTC

1. Risk Rating: MEDIUM
   The company shows a positive net asset position with growing working capital, indicating an improving financial base. However, the significant increase in current liabilities alongside director advances and the micro-entity status suggest some caution. The lack of audit and limited financial disclosure typical of micro companies limits insight into underlying risks.

2. Key Concerns:

• Sharp increase in current liabilities from £2,797 (2022) to £124,844 (2023) could indicate rising short-term obligations that may pressure liquidity.
• Director advances totaling £29,635 each at year end (2023) raise questions about related-party transactions and dependency on directors for funding.
• Micro entity status with minimal disclosures and no audit reduces transparency and makes it harder to fully assess operational and financial health.

3. Positive Indicators:

• Net current assets and shareholders’ funds increased substantially in 2023, from £759 to £63,427 and £759 to £66,138 respectively, showing growth in equity and working capital.
• The company is active, compliant with filing deadlines, and has experienced directors with professional occupation (solicitors), which supports operational stability.
• The firm operates in a specialized legal services sector (SIC 69102) with an active web presence and customer contact details, indicating ongoing business activity.

4. Due Diligence Notes:

• Investigate the nature and terms of the significant current liabilities accrued in 2023 to assess repayment risk and cause of the increase.
• Review the director advances and related-party transactions for governance and financial impact, including whether these are loans or capital injections.
• Request more detailed financial information beyond micro-entity filings, including profit and loss statements, to better evaluate profitability and cash flow.
• Confirm the operational model and client base stability to assess sustainability given the small employee base (average 2 in 2023).
• Verify no regulatory or compliance issues exist beyond annual filing status, particularly given the legal services industry’s regulatory environment.