Company Number: 13266487

Analysis Date: 2025-07-20 18:15 UTC

1. Risk Rating: MEDIUM
   The company demonstrates a modest recovery in net current assets from negative in prior years to a small positive balance in the latest year. However, the absolute values are low, reflecting limited scale and thin working capital buffers. The micro-entity status and minimal share capital also indicate constrained financial resources. The recent director changes may add some uncertainty.

2. Key Concerns:

• Low Working Capital: Net current assets of only £857 as of 31 March 2024 provide minimal cushion to meet short-term obligations, exposing the company to liquidity risk.
• History of Negative Equity: Shareholders’ funds were significantly negative (£-1,080) in the prior two years, suggesting past operational or financial difficulties.
• Director Turnover: Multiple director resignations and new appointments in early 2025 could point to governance instability or restructuring that warrants further scrutiny.

3. Positive Indicators:

• Improved Financial Position: The latest accounts show a turnaround from negative net current assets to a positive balance, indicating some financial stabilization.
• No Filing or Compliance Issues: All statutory accounts and confirmation statements are filed on time with no overdue filings, reflecting regulatory compliance.
• Micro-Entity Status: Limited scale reduces complexity and reporting burden, which can be appropriate for a small business at an early stage.

4. Due Diligence Notes:

• Cash Flow and Profitability Trends: Since only balance sheet snapshots are available, review detailed profit and loss data and cash flow statements to assess operational sustainability and cash generation capacity.
• Nature of Business and Contracts: Understand the company’s business model under SIC 82990 (Other business support services not elsewhere classified) to evaluate revenue visibility and client concentration risks.
• Reason for Director Changes: Investigate the reasons behind the resignation of previous directors and the appointment of three new directors simultaneously, ensuring no underlying governance or operational issues.
• Capital Structure: Confirm whether the minimal share capital of £100 is sufficient for operational needs or if additional financing arrangements exist.
• Historical Losses: Explore causes of past negative equity and whether they have been fully addressed or if hidden liabilities remain.