Company Number: 13789876

Analysis Date: 2025-07-20 16:58 UTC

1. Risk Rating: MEDIUM
   The company shows some improvement in net assets from negative (£2,715) to positive (£3,539) over the last year, which is encouraging. However, persistent net current liabilities and modest net asset values indicate a fragile financial position. The small scale of operations and limited financial buffers present moderate solvency and liquidity risks.

2. Key Concerns:

• Negative Net Current Assets: The company continues to carry net current liabilities (£8,188 in 2023), indicating short-term liquidity pressure and potential challenges in meeting immediate obligations.
• Limited Asset Base and Scale: Fixed assets are low (£14,197), and the company operates as a micro-entity with only two employees, suggesting limited operational scale and potentially constrained revenue generation capacity.
• Single Director and Shareholder Control: One individual holds 75-100% of shares and controls all voting rights and director appointments, posing governance concentration risk and limited oversight.

3. Positive Indicators:

• Improved Financial Position: The company has reversed prior negative net assets to a positive position in 2023, indicating some successful efforts to stabilize finances.
• Timely Filing Compliance: Both accounts and confirmation statements are filed on time, demonstrating regulatory compliance and good governance in statutory obligations.
• Growing Workforce: The average number of employees increased from 1 to 2 over the year, suggesting modest business growth or operational scaling.

4. Due Diligence Notes:

• Cash Flow Analysis: Investigate detailed cash flow to understand how the company manages working capital deficits given ongoing net current liabilities.
• Revenue and Profitability Trends: Review turnover and profit/loss accounts (not provided) to assess operational sustainability beyond balance sheet snapshots.
• Customer and Supplier Concentration: Understand the customer base and supplier relationships to evaluate business risk from dependency or payment terms.
• Director Background: Although no red flags are noted, reviewing the director’s business history and reputation could provide insight into governance quality.
• Debt Structure: Clarify the nature and terms of current liabilities to assess refinancing or settlement risks.