Company Number: 13245456

Analysis Date: 2025-07-20 18:24 UTC

1. Risk Rating: MEDIUM

Justification: Atlantic Ship Design Ltd shows consistent positive net assets and net current assets over the last four years, indicating solvency. However, there is a notable reduction in current assets and net assets from 2023 to 2024, which could suggest declining liquidity. The company operates as a micro-entity with only one employee (the director), which may raise concerns about operational capacity and sustainability. The absence of audit requirements is typical for micro-entities but limits transparency.

2. Key Concerns:

• Declining Asset Base: Current assets decreased from £230k in 2023 to £80k in 2024, with net assets similarly falling from £100k to £57k, potentially indicating liquidity constraints or reduced operational scale.
• Limited Workforce and Scale: The company is effectively a single-person operation, which may impact business continuity, growth potential, and operational resilience.
• Lack of Audit and Limited Financial Disclosure: Filing under micro-entity provisions limits available financial detail, making it difficult to fully assess financial health and cash flow dynamics.

3. Positive Indicators:

• Solvency Maintained: Positive net current assets and net assets in all reported years indicate the company can meet short-term obligations.
• Up-to-date Filings: Accounts and confirmation statements are not overdue, suggesting compliance with statutory requirements.
• Stable Directorship and Governance: The same individual holds both director and secretary roles with no records of disqualification or governance issues.

4. Due Diligence Notes:

• Investigate the cause of the significant reduction in current assets and net assets between 2023 and 2024, including cash flow statements if available.
• Review any contracts or order books to assess future revenue streams and operational viability given the limited staff.
• Confirm whether the company has any contingent liabilities or off-balance-sheet obligations not visible in micro-entity accounts.
• Consider obtaining management accounts or supplementary financial information for more granular insight into recent performance.