Company Number: 12596081

Analysis Date: 2025-07-29 15:54 UTC

1. Risk Rating: LOW to MEDIUM
   Justification: The company is active, solvent, and compliant with its filing deadlines. It holds positive net current assets and net assets, indicating the ability to meet short-term and long-term liabilities. However, there is a notable decline in cash and net assets from 2023 to 2024 which warrants monitoring.

2. Key Concerns:

• Significant decrease in cash and current assets in the 2024 financial year compared to 2023 (£41,664 vs £115,361 cash), which may indicate a liquidity tightening or increased cash outflows.
• Sharp reduction in net assets and shareholders’ funds from £101,852 (2023) to £44,088 (2024), implying potential erosion of retained earnings or accumulated losses affecting financial stability.
• Limited scale and scope: single employee and minimal fixed assets, which might constrain operational flexibility and scalability in a competitive IT consultancy sector.

3. Positive Indicators:

• Current liabilities have decreased substantially from £17,973 (2023) to £1,811 (2024), improving working capital and short-term solvency metrics.
• The company maintains a positive net current asset position (£42,869 in 2024), suggesting it can cover its immediate debts from liquid assets.
• No overdue filings or compliance issues; accounts and confirmation statements are filed timely, indicating good governance practices.
• The director’s statement confirms exemption from audit, consistent with the company’s small size, and acknowledgment of compliance responsibilities.

4. Due Diligence Notes:

• Investigate reasons for the significant drop in cash and net assets between 2023 and 2024, including any one-off expenditures, investments, or operational losses.
• Review turnover and profit and loss account details (not filed publicly) to clarify operational profitability, revenue trends, and cost structure.
• Confirm whether there are any contingent liabilities or off-balance sheet risks not reflected in the filleted accounts.
• Assess the sustainability of a single-person operation in IT consultancy and whether the business model supports growth or diversification.
• Verify if there are any related party transactions or director loans impacting financial health.