Company Number: 13648299

Analysis Date: 2025-07-20 13:00 UTC

1. Risk Rating: MEDIUM

The company shows a positive net current asset position and shareholder funds, indicating solvency at the reporting date. However, a notable decline in net current assets and shareholders funds in the latest financial year signals emerging financial pressure that warrants close monitoring.

2. Key Concerns:

• Declining Net Current Assets and Equity: Shareholders funds have decreased from £12,389 in 2023 to £6,893 in 2024 and net current assets similarly dropped, potentially indicating reduced liquidity and weakening financial stability.
• Limited Financial History and Size: As a micro-entity incorporated in 2021, the company has a short operating history and limited scale (1 employee), constraining the ability to assess operational resilience and cash flow sustainability fully.
• Concentration of Control: Two directors each hold significant ownership and voting rights (25-50%), which may pose governance risks or limit independent oversight.

3. Positive Indicators:

• Compliance and Filing Status: All statutory filings, including accounts and confirmation statements, are up to date with no overdue returns or accounts, reflecting good regulatory compliance.
• Solvent Balance Sheet: The company maintains positive net current assets and shareholders funds, indicating it can currently meet its short-term obligations.
• Clear Director Accountability: The directors are identified, and there are no records of disqualification or adverse regulatory flags.

4. Due Diligence Notes:

• Investigate reasons behind the reduction in net current assets and equity between 2023 and 2024 to determine if this is a one-off event or indicative of ongoing operational or financial difficulties.
• Review detailed profit and loss data and cash flow statements (not available here) to assess revenue trends, profitability, and liquidity dynamics.
• Confirm the nature of physical well-being and management consultancy activities to evaluate business diversification and revenue sources.
• Conduct governance review given the concentrated ownership and voting rights, particularly regarding decision-making and risk oversight.
• Validate the director appointment dates and any changes to understand management stability and strategy continuity.