Company Number: 13130146

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

1. Risk Rating: MEDIUM
   The company shows a significant reduction in net assets and current assets in its latest financial year, which signals potential liquidity and operational stress. However, it remains solvent with positive net assets and no overdue filings.

2. Key Concerns:

• Sharp decline in current assets from £35,625 in 2023 to £2,721 in 2024, potentially indicating cash flow issues or collection problems.
• Decrease in net assets from £14,608 to £3,765 over one year, suggesting erosion of financial buffer.
• Reduction in employee count from 2 to 1, possibly reflecting downsizing or operational contraction.

3. Positive Indicators:

• The company remains active and compliant with both accounts and confirmation statement filings, with no overdue submissions.
• Positive net current assets and net assets, albeit reduced, indicate the company still holds more assets than liabilities.
• Director has been in place since incorporation, providing continuity in management.

4. Due Diligence Notes:

• Investigate reasons behind the significant drop in current assets and net assets between 2023 and 2024, including any asset disposals, receivables write-offs, or operational changes.
• Review cash flow statements and debtor profiles (not provided) to assess liquidity position more precisely.
• Evaluate the sustainability of the business model given the reduction in staff and asset base.
• Confirm there are no contingent liabilities or off-balance sheet risks not disclosed in micro-entity accounts.
• Assess the director’s track record and any related party transactions that may impact financial stability.