Company Number: 12848688

Analysis Date: 2025-07-20 16:50 UTC

1. Risk Rating: MEDIUM
   The company shows ongoing viability with positive net assets and current assets exceeding current liabilities. However, a significant increase in current liabilities, particularly taxation and social security owed, and the absence of debtors in the latest year suggest some liquidity pressures and potential cash flow concerns.

2. Key Concerns:

• Sharp rise in current liabilities (from £25,914 in 2023 to £40,331 in 2024), all classified as taxation and social security, which may indicate unpaid tax obligations accumulating.
• Absence of debtors in the 2024 accounts compared to £21,411 in 2023 could reflect a slowdown in receivables or changes in revenue recognition impacting cash inflows.
• No employees recorded for the last two years, which raises questions about operational sustainability and whether the business activities are being conducted by contractors or the directors themselves.

3. Positive Indicators:

• The company remains active and compliant with filing deadlines, indicating good regulatory adherence.
• Positive net current assets and net assets (£14,669 in 2024) suggest the company still maintains a buffer of short-term assets over liabilities.
• Cash balance increased from £48,598 (2023) to £55,000 (2024), which is a favorable sign for liquidity despite increased liabilities.

4. Due Diligence Notes:

• Investigate the nature and cause of the increased taxation and social security liabilities to assess if these are timing issues, disputes, or signs of financial stress.
• Clarify the absence of debtors in the latest year and whether this reflects reduced sales, changes in credit policy, or collection issues.
• Understand the operational model, specifically regarding the lack of employees, to evaluate sustainability and potential hidden liabilities (e.g., contractor payments or director remuneration).
• Confirm the identity and background of directors and secretary, noting that one director’s nationality is Spanish and secretary’s nationality is unknown; ensure no regulatory concerns or disqualifications exist.
• Review recent turnover data if available, as the latest turnover figure (2020) was very low (£14,573), and turnover trends will affect risk assessment.