Company Number: 13147194

Analysis Date: 2025-07-20 11:55 UTC

1. Risk Rating: MEDIUM
   The company shows positive net current assets and shareholder funds, indicating solvency at present; however, the significant increase in current liabilities and director advances raises moderate concerns about liquidity and operational funding.

2. Key Concerns:

• Sharp increase in current liabilities from £503 in 2022 to £26,555 in 2023, largely owed to group undertakings, indicating reliance on related-party funding which may affect liquidity risk.
• Director advances have increased substantially to £31,926, suggesting the company may be dependent on director funding to maintain operations, which could be a red flag for external investors.
• Absence of an income statement and audit report limits visibility into profitability and cash flow generation, making it difficult to assess operational stability and financial performance comprehensively.

3. Positive Indicators:

• The company is compliant with filing deadlines for accounts and confirmation statements, showing good regulatory compliance and governance.
• Shareholders' funds have increased slightly from £5,100 in 2022 to £5,471 in 2023, suggesting retained earnings growth and a stable equity base.
• Net current assets remain positive (£5,470 in 2023), indicating the company can currently cover its short-term liabilities.

4. Due Diligence Notes:

• Investigate the nature of the amounts owed to group undertakings and the terms of these obligations to assess the risk and sustainability of related-party funding.
• Review director advances in detail, including repayment terms and any potential conflicts of interest or impact on company liquidity.
• Obtain and review the income statement or management accounts to evaluate profitability and cash flow trends.
• Confirm the operational activities underlying the holding company classification (SIC 64209) to understand business sustainability and revenue sources.
• Verify whether the exemption from audit is appropriate given company size and complexity, and consider requesting audited financials for greater assurance.