Company Number: 13153432

Analysis Date: 2025-07-29 20:52 UTC

1. Risk Rating: MEDIUM
   The company shows a modest net current asset position and positive shareholder funds, indicating solvency. However, a significant decline in current assets and cash from the prior year and relatively low cash balances raise concerns regarding liquidity and cash flow stability.

2. Key Concerns:

• Sharp reduction in current assets from £111k in 2023 to £58.5k in 2024, particularly debtors declining from £105k to £58k, may signal reduced sales or collection issues.
• Extremely low cash at bank (£557) relative to current liabilities (£49k) could create short-term liquidity pressures.
• The resignation of one director in November 2024 and small scale operations (only 2 employees) might indicate limited management capacity and operational scale.

3. Positive Indicators:

• Positive net current assets (£9,290) and shareholders’ funds (£9,290) suggest the company remains solvent at the balance sheet date.
• No overdue filings or compliance issues reported; returns and accounts are filed timely, reflecting regulatory adherence.
• The company is relatively new (incorporated 2021) and has maintained some level of retained earnings, indicating ongoing business activity.

4. Due Diligence Notes:

• Investigate the reasons behind the significant drop in debtors and current assets between 2023 and 2024, including client payment patterns and revenue changes.
• Review cash flow statements and bank reconciliations to assess liquidity management and potential short-term funding needs.
• Understand the impact of the director resignation on governance and operational continuity, including plans for replacement or redistribution of responsibilities.
• Confirm no contingent liabilities or off-balance-sheet obligations that might affect solvency.