Company Number: 13477555

Analysis Date: 2025-07-29 15:06 UTC

1. Risk Rating: MEDIUM
   The company shows increasing net assets and capital base but continues to have persistent net current liabilities, indicating liquidity concerns. While it is solvent on a net asset basis, its ability to meet short-term obligations may be strained.

2. Key Concerns:

• Negative Net Current Assets: For each year since incorporation, current liabilities exceed current assets by a significant margin (e.g., £21,917 deficit in 2024), posing a risk to short-term liquidity and operational cash flow.
• Small Scale and Micro Entity Status: Being a micro-entity limits the amount of financial transparency and detail available, restricting investor insight into profitability, cash flows, and operational efficiency.
• Concentration of Control: Single director and sole shareholder control (75-100% ownership by Ms. Liyee Soong) could raise governance and succession risks.

3. Positive Indicators:

• Growing Net Assets and Capital: Net assets have increased from £5,384 in 2021 to £20,150 in 2024, showing an improving equity position and capital injection or retained profits.
• Compliance with Filing: The company’s accounts and confirmation statements are filed on time and are up to date, indicating good regulatory compliance and governance.
• Stable Employment: The average employee count has remained steady at 8, suggesting operational stability in workforce size.

4. Due Diligence Notes:

• Investigate cash flow statements and profit and loss accounts (not publicly filed) to assess operational profitability and cash generation capacity.
• Review creditor terms and any short-term financing to understand liquidity management, given persistent net current liability deficits.
• Assess the director's track record and governance practices due to single-person control.
• Clarify the nature of fixed assets and whether any are pledged as security against liabilities.