Company Number: 13201417

Analysis Date: 2025-07-29 17:10 UTC

1. Risk Rating: MEDIUM
   The company shows positive net assets and shareholders’ funds, indicating solvency on paper. However, the high level of current liabilities relative to current assets suggests liquidity risk. The business has only two employees and operates as a micro-entity, limiting the scale and diversification of operations.

2. Key Concerns:

• Liquidity Pressure: Current liabilities (£242,212) significantly exceed current assets (£16,896) as per 2023 figures, indicating potential cash flow constraints.
• High Long-Term Creditors: Substantial creditors due after one year (£242,212) could impose financial burdens or refinancing risks.
• Limited Operational Scale: With just two employees and micro-entity status, the company may have limited operational resilience and bargaining power in its financial management sector.

3. Positive Indicators:

• Solvent Position: Net assets of £319,899 and positive shareholders’ funds indicate the company currently meets its obligations on a balance sheet basis.
• Consistent Fixed Assets: Stable fixed asset base (£668,427) over three years suggests investment in tangible or intangible assets supporting ongoing operations.
• Compliance Up-to-date: No overdue filings, with accounts and confirmation statements filed on time, demonstrating good regulatory compliance.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors to assess refinancing risk and repayment schedules.
• Review cash flow statements or bank statements (not provided) to confirm liquidity beyond balance sheet snapshots.
• Understand business model sustainability given small employee base and whether the current asset/liabilities mismatch is seasonal or structural.
• Confirm if any contingent liabilities or off-balance-sheet obligations exist that could affect financial stability.
• Validate director background and governance practices, though no disqualifications or irregularities are indicated.