Company Number: 13825538

Analysis Date: 2025-07-20 13:32 UTC

1. Risk Rating: MEDIUM
   While the company is currently active with timely filings and no overdue returns or accounts, the financial data indicates a significant decline in net assets and working capital between 2023 and 2024, which raises concerns about short-term liquidity and solvency.

2. Key Concerns:

• Declining Net Assets and Working Capital: Net assets dropped from £160,547 in 2023 to £28,625 in 2024. Similarly, net current assets fell sharply from £148,400 to £18,486, indicating reduced buffer to meet short-term liabilities.
• High Current Liabilities Relative to Current Assets: In 2024, current liabilities (£132,120) are close to current assets (£150,606), suggesting tight liquidity and potential cash flow constraints.
• Single Director and Shareholder Control: The company is controlled solely by one individual who is both director and 100% shareholder, which may increase governance and operational risks due to lack of oversight or succession planning.

3. Positive Indicators:

• Compliance with Filing Requirements: No overdue accounts or confirmation statements; filings are up to date indicating good regulatory compliance.
• Micro-Entity Status: The company benefits from simplified reporting requirements, reducing administrative burden and costs.
• No Audit Requirement: Given its size and exemption under section 477, this reduces external costs and complexity.
• Consistent Business Activity: The company has been operational since 2022 without status changes such as liquidation or administration.

4. Due Diligence Notes:

• Examine Profit and Loss Details: The absence of a profit and loss statement in the filings limits insight into operational profitability. Obtaining internal P&L or management accounts would be important to assess ongoing business viability.
• Cash Flow Analysis: Investigate cash flow statements and creditor/debtor aging to evaluate liquidity pressures not fully visible from balance sheet snapshots.
• Director’s Business Plan and Funding: Understand the strategic outlook, any external financing arrangements, and the director’s plans to restore financial strength.
• Customer and Supplier Concentration: Assess dependencies that may affect revenue stability or cost base.
• Governance Practices: Review any policies or controls in place given the sole director/shareholder structure to mitigate governance risks.