Company Number: 13828055

Analysis Date: 2025-07-29 18:36 UTC

1. Risk Rating: MEDIUM
   The company demonstrates improving net asset and working capital positions, reflecting growing financial stability. However, the presence of director loans and relatively modest absolute cash balances compared to liabilities in prior years introduce some liquidity risk. The company is young (incorporated 2022) and has limited financial history, which adds uncertainty around operational sustainability.

2. Key Concerns:

• Director loans as debtors: £30,875 loan to directors (interest-bearing) is classified under current assets but dependent on repayment by 30 September 2025, posing potential liquidity timing risk.
• Past fluctuations in current liabilities: Significant reduction from £62,831 (2023) to £30,825 (2024) suggests volatility in short-term obligations which may reflect variable creditor terms or cash flow pressures.
• Limited operational history: Incorporated in 2022 with only 3 years of accounts, making it difficult to assess long-term operational stability and growth trajectory reliably.

3. Positive Indicators:

• Improved financial position: Net assets increased markedly from £7,255 (2023) to £64,609 (2024), driven by higher net current assets and cash balances, indicating strengthening solvency.
• Positive working capital: Net current assets of £63,904 (2024) comfortably exceed current liabilities, supporting the ability to meet short-term obligations.
• Timely filings and compliance: No overdue filings for accounts or confirmation statements, and the company is not under liquidation or administration.

4. Due Diligence Notes:

• Examine the nature and terms of the director loans within other debtors, including repayment history and enforceability.
• Review trading performance and revenue trends to assess sustainability beyond balance sheet improvements.
• Confirm if there are any contingent liabilities or off-balance sheet risks not disclosed in the accounts.
• Assess the adequacy of management and governance, given the small size and director-controlled structure.