Company Number: 12579473

Analysis Date: 2025-07-20 13:32 UTC

1. Risk Rating: MEDIUM
   The company shows overall positive net assets and working capital, but the presence of significant long-term liabilities and a declining shareholder fund position warrants caution. The micro-entity status limits available financial detail, restricting comprehensive risk assessment.

2. Key Concerns:

• Long-term liabilities of £20,235 reported in 2024 are substantial relative to net assets (£2,646), indicating leverage risk.
• Shareholders’ funds decreased from £4,002 in 2023 to £2,646 in 2024, suggesting erosion of equity.
• Director loan of £5,188, unsecured and interest-free, may indicate reliance on related party funding which could affect liquidity and governance.

3. Positive Indicators:

• Consistent positive net current assets (£22,214 in 2024) suggest short-term liquidity is sufficient to meet immediate obligations.
• No overdue filings and timely confirmation statements indicate regulatory compliance is maintained.
• Single director and sole controlling shareholder (Mr. Carter) may streamline decision-making and responsiveness.

4. Due Diligence Notes:

• Investigate the nature and terms of the £20,235 long-term creditor balance to understand repayment obligations and impact on solvency.
• Review the causes behind the decline in shareholder funds and profitability trends not visible in the micro-entity financials.
• Assess the sustainability of director loans and whether these represent ongoing liquidity support, including any potential conflicts of interest or repayment plans.