Company Number: 13056195

Analysis Date: 2025-07-20 12:15 UTC

1. Risk Rating: MEDIUM
   The company has demonstrated a significant turnaround from large net liabilities in 2021 and 2022 to positive net assets in 2023, indicating improved solvency. However, the narrow net current assets and the presence of long-term creditors suggest some liquidity risk remains. The company is micro-sized and exempt from audit, which limits the depth of financial scrutiny.

2. Key Concerns:

• Historical Negative Net Assets: The company had substantial negative equity in 2021 and 2022, which may reflect past operational or financial difficulties.
• Tight Working Capital: Net current assets are positive but modest (£1,880), implying limited short-term liquidity buffer against sudden cash flow demands.
• Long-term Liabilities: The presence of £5,003 creditors falling due after more than one year requires further clarity on repayment terms and financial impact.

3. Positive Indicators:

• Return to Positive Equity: Net assets improved to £7,660 in 2023 from a negative position, indicating operational improvements or capital injections.
• Stable Employment: The company maintains a small, consistent workforce (2 employees), which may reflect controlled operating costs.
• No Overdue Filings: All statutory filings, including accounts and confirmation statements, are up to date, suggesting good compliance.

4. Due Diligence Notes:

• Review the composition and maturity profile of current and long-term liabilities to assess repayment risk and impact on cash flows.
• Investigate the drivers behind the significant negative equity in prior years and the sustainability of the recent financial improvements.
• Evaluate the company's cash flow statements and forecasts (not provided here) to assess liquidity beyond balance sheet snapshots.
• Confirm the extent of transactions with related parties or any capital injections from the sole shareholder/director.