Company Number: 12705778

Analysis Date: 2025-07-20 19:06 UTC

1. Risk Rating: LOW
   The company displays strong liquidity and solvency positions with growing net assets and positive working capital. Timely filings and absence of any legal or compliance issues further support a low risk assessment.

2. Key Concerns:

• Reliance on a single controlling director and shareholder (Mr. Shane Patrick Ferguson) poses concentration risk in governance and decision-making.
• Significant tax and social security creditors (£363,958) relative to trade creditors may warrant closer scrutiny on tax management and payment schedules.
• The company’s small scale in terms of employee count (4 employees) and share capital (£1) suggests limited operational scale and capital buffer.

3. Positive Indicators:

• Net current assets have increased substantially from £152k in 2020 to £597k in 2023, indicating improving liquidity.
• Cash balances rose to £667k in 2023, representing strong immediate payment capacity.
• Shareholders’ funds grew from £154k in 2020 to £602k in 2023, reflecting retained earnings and financial stability.
• No overdue accounts or confirmation statement filings, showing good compliance discipline.
• The company is active and filing under the full exemption small company regime, consistent with its size and operational profile.

4. Due Diligence Notes:

• Investigate the nature and timing of tax and social security liabilities to assess any potential liquidity strains or disputes with HMRC.
• Review contracts or commitments underlying operating leases (£64,848) to understand fixed cost obligations.
• Assess the company’s customer concentration and revenue stability, given this data is not provided.
• Confirm the robustness of internal controls and governance given the single substantial shareholder/director structure.
• Verify the accuracy of reported debtors and their collectability given the large increase year on year.