Company Number: 13887016

Analysis Date: 2025-07-20 16:48 UTC

1. Risk Rating: MEDIUM
   The company appears solvent with positive net assets and working capital. However, there is a noticeable decline in net assets and net current assets in the latest financial year, alongside a negative debtor balance, which raises some liquidity concerns. The limited employee base and small scale also suggest operational vulnerability.

2. Key Concerns:

• Declining Net Assets and Working Capital: Net assets decreased from £15,901 in 2024 to £10,075 in 2025, and net current assets halved from £14,509 to £7,237, indicating potential erosion of financial buffer.
• Negative Debtors Balance: The 2025 accounts show a debtor balance of -£149, which is unusual and may indicate accounting adjustments or issues with receivables recognition.
• Small Scale and Limited Employees: The company employs only 2 people on average, potentially limiting operational capacity and exposing the business to risks from key person dependency.

3. Positive Indicators:

• Positive Net Assets and Working Capital: Despite declines, the company maintains positive net assets and net current assets, suggesting it can currently meet short-term obligations.
• No Overdue Filings: Both accounts and confirmation statements are up to date, indicating compliance with regulatory requirements.
• Strong Control and Stability in Management: The sole director and 75-100% shareholder is consistent and local, potentially allowing for decisive management and oversight.

4. Due Diligence Notes:

• Investigate the reason behind the negative debtors figure in 2025 and its impact on cash flow and revenue recognition.
• Review cash flow statements and profit and loss details (not included in the abridged accounts) to assess operational profitability and liquidity trends.
• Evaluate customer concentration and contract stability given the small scale of operations.
• Confirm absence of director disqualifications or adverse regulatory actions beyond the data provided.
• Assess impact of any provisions for liabilities which doubled from £327 to £666 in the last year.