Company Number: 12592151

Analysis Date: 2025-07-20 13:40 UTC

1. Risk Rating: MEDIUM
   The company shows modest net current assets and positive shareholder funds but has exhibited a significant decline in working capital and net assets over recent years. This suggests some financial strain despite no overdue filings or liquidation status.

2. Key Concerns:

• Steep reduction in net current assets from £36,081 in 2021 to only £958 in 2024, indicating tightening liquidity.
• Small scale of operations (micro entity) with very limited share capital (£100) and modest asset base, which may limit resilience to financial shocks.
• Concentrated ownership with a single significant shareholder controlling 50-75%, which could pose governance and continuity risks.

3. Positive Indicators:

• Company is compliant with filing deadlines for both accounts and confirmation statements, suggesting sound regulatory compliance.
• Active status with no signs of insolvency proceedings or overdue accounts, implying ongoing operational activity.
• Slight increase in employee count from 2 to 3, indicating some operational growth or stability.

4. Due Diligence Notes:

• Investigate reasons behind the sharp reduction in net current assets and net assets since 2021, including profitability trends, cash flows, and debt levels.
• Review detailed cash flow statements and management accounts to assess liquidity and working capital management more fully.
• Assess the financial impact of related party transactions or shareholder loans given the concentrated ownership structure.
• Verify the operational model and client base given the SIC code relating to employment placement agencies, to understand revenue sustainability.