Company Number: 14057021

Analysis Date: 2025-07-29 14:14 UTC

1. Risk Rating: MEDIUM
   The company shows modest net asset growth and positive shareholders' funds, but low net current assets and the introduction of long-term creditors raise moderate solvency and liquidity concerns for a micro-entity only two years post-incorporation.

2. Key Concerns:

• Low Net Current Assets: The net current assets declined sharply from £9,371 in 2023 to only £778 in 2024, indicating reduced short-term liquidity and potential cash flow pressure.
• Long-Term Creditors Introduced: £15,450 of creditors falling due after more than one year appeared in 2024, which could signify reliance on external financing and future repayment obligations.
• Limited Operating Scale and History: As a micro-entity incorporated in 2022 with only 2 employees and limited financial history, the operational stability and sustainability of business activities remain uncertain.

3. Positive Indicators:

• Positive Net Assets and Shareholders’ Funds: The company’s net assets increased from £9,371 in 2023 to £25,628 in 2024, reflecting some capital injections or retained earnings.
• No Overdue Filings: Both accounts and confirmation statement filings are up to date, indicating compliance with Companies House requirements.
• Stable Ownership and Management: A single controlling shareholder/director maintains majority control with no disqualifications or governance issues noted.

4. Due Diligence Notes:

• Verify the nature and terms of the long-term creditors and assess the company’s ability to service these debts.
• Review cash flow statements (if available) to understand liquidity dynamics and operational cash generation.
• Investigate the underlying business model and revenue streams given the micro-entity scale and industry classification (Travel agency activities).
• Confirm the absence of any contingent liabilities or off-balance-sheet obligations not disclosed in these micro-entity accounts.
• Understand the ownership structure and any related party transactions given the 75-100% control by one individual.