Company Number: 13559460

Analysis Date: 2025-07-20 18:26 UTC

1. Risk Rating: MEDIUM
   The company is currently active and has filed accounts and returns on time, indicating compliance with statutory requirements. However, the significant reduction in net assets and current assets in the latest financial year compared to the previous year raises some concerns about financial stability and liquidity.

2. Key Concerns:

• Decline in Net Assets and Current Assets: Net assets decreased from £34,572 in 2023 to £14,031 in 2024, and current assets dropped from £47,626 to £13,931, which could indicate deteriorating financial health or cash constraints.
• Single Director and Shareholder Control: The company is controlled 100% by one individual who is also the sole director, which may increase operational risk due to lack of governance diversity.
• Micro Entity Status with Minimal Disclosure: As a micro entity, the company benefits from simplified reporting and exemption from audit, limiting available financial detail and making in-depth risk assessment difficult.

3. Positive Indicators:

• Compliance with Filing Deadlines: The company’s accounts and confirmation statements are up to date and not overdue, indicating good regulatory compliance.
• Positive Net Current Assets: Despite the decline, net current assets remain positive at £13,931, suggesting the company can meet short-term liabilities.
• No Off-Balance Sheet Liabilities: The accounts explicitly state no off-balance sheet liabilities, reducing hidden risk exposure.

4. Due Diligence Notes:

• Investigate reasons behind the sharp decline in current assets and net assets between 2023 and 2024 to assess cash flow and operational sustainability.
• Review cash flow statements or bank records if available to evaluate liquidity position beyond balance sheet snapshots.
• Assess the business pipeline and contracts to understand future revenue prospects given the company’s small scale and sole director structure.
• Confirm whether there have been any related party transactions or loans that may impact financial stability.
• Verify if any contingent liabilities or regulatory issues exist that are not captured in the micro entity accounts.