Company Number: 12418673

Analysis Date: 2025-07-29 20:20 UTC

1. Risk Rating: MEDIUM
   The company shows positive net current assets and net assets in the latest financial year, indicating some solvency. However, the total net assets are relatively low (£6,574), and the company still carries long-term liabilities (£4,605). The micro-entity status and limited shareholder funds also suggest a small-scale operation with limited financial cushion.

2. Key Concerns:

• Low Capitalization: Share capital is nominal (£10), and total shareholders’ funds remain minimal, potentially limiting the ability to absorb financial shocks.
• Long-Term Creditors: The presence of significant creditors due after more than one year (£4,605) could pose solvency risks if cash flow deteriorates.
• Thin Working Capital Margin: Although net current assets are positive (£3,734), the margin is modest relative to current liabilities (£19,376), which could indicate potential liquidity strain under adverse conditions.

3. Positive Indicators:

• Improving Financial Position: Net assets increased substantially from £13 in 2023 to £6,574 in 2024, reflecting some growth or improved profitability.
• No Overdue Filings: Both accounts and confirmation statements are up to date, showing compliance with statutory requirements.
• Single Director with Control: Clear ownership structure with one director and PSC, facilitating streamlined decision-making.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors to assess repayment demands and impact on cash flow.
• Review recent profit and loss performance and cash flow statements (not provided) to evaluate operational sustainability and liquidity beyond balance sheet snapshots.
• Confirm the company’s business model viability in the wholesale machinery sector and assess dependency on key suppliers or customers.
• Verify the absence of director disqualifications or governance issues beyond the data provided.