Company Number: NI674657

Analysis Date: 2025-07-29 15:50 UTC

1. Risk Rating: LOW
   The company demonstrates a stable and improving financial position with positive net current assets and net assets over the last four years. No overdue filings or indicators of regulatory non-compliance are present. The company is small-scale but shows consistent growth in working capital and shareholder funds.

2. Key Concerns:

• Limited scale of operations as a micro-entity may impact operational flexibility and resilience to market shocks.
• Single director and sole person with significant control may present governance concentration risk.
• Lack of detailed profitability or cash flow data limits insight into operational earnings quality and sustainability.

3. Positive Indicators:

• Net current assets have more than doubled from £12,091 in 2022 to £24,923 in 2023, suggesting improving liquidity.
• No overdue statutory filings; both accounts and confirmation statements are up to date, indicating good regulatory compliance.
• Shareholder funds have increased steadily year-on-year, signaling retained profits or capital injections.
• Low liabilities relative to assets and positive net asset position support solvency.

4. Due Diligence Notes:

• Obtain detailed profit and loss accounts and cash flow statements to assess operational profitability and cash generation.
• Confirm the nature of current assets for liquidity quality (e.g., how much is cash vs. receivables or stock).
• Review director’s report or any strategic outlook for business model sustainability and market positioning.
• Check for any related party transactions or contingent liabilities not disclosed in micro-entity accounts.
• Assess governance arrangements given the sole director and sole shareholder structure.