Company Number: 12568501

Analysis Date: 2025-07-20 13:10 UTC

1. Risk Rating: MEDIUM
   The company has shown a significant turnaround in net current assets and net assets in the latest financial year (2024) after several years of negative net current assets and shareholders' funds. This improvement reduces immediate solvency risk, but the historical deficits indicate prior financial stress. The small scale of the business and limited capital base suggest moderate liquidity and operational stability risks remain.

2. Key Concerns:

• Historical Negative Net Assets: The company reported net liabilities of approximately £3,933 in 2022 and 2023, indicating prior solvency challenges. Although the 2024 figures show improvement, the recent recovery should be validated.
• Limited Share Capital and Financial Scale: With only £1 in share capital and micro-entity scale (current assets under £7k), the company has minimal financial buffer to absorb shocks or invest for growth.
• Single Director and Employee: The company is operated by one director who is also the sole employee. This raises operational risk concerns including dependence on one individual and limited management capacity.

3. Positive Indicators:

• Improvement in Financial Position: The net current assets and shareholders' funds recovered to positive £5,348 and £5,349 respectively in 2024 from negative values in previous years. This suggests improved cash flow or working capital management.
• Filing Compliance: The company is up to date with both accounts and confirmation statement filings, indicating good regulatory compliance.
• Stable Incorporation and Operations: The company has been active since 2020 without any status changes such as liquidation or administration.

4. Due Diligence Notes:

• Investigate the drivers behind the turnaround in net assets in 2024, including changes in revenue, costs, receivables, or liabilities.
• Review cash flow statements (if available) or bank statements to confirm liquidity and working capital sustainability.
• Assess client base and contracts to evaluate operational sustainability given the sole director/employee structure.
• Confirm no director disqualifications or regulatory sanctions exist beyond the data provided.
• Enquire about the nature and timing of any related party transactions or loans that may have affected financial position.