Company Number: 14156517

Analysis Date: 2025-07-29 20:54 UTC

1. Risk Rating: LOW
   C2GP LIMITED exhibits a solid liquidity position with net current assets increasing significantly over the latest financial year. The company is current on all filings with no overdue accounts or confirmation statements, indicating good regulatory compliance. The operating scale is small, consistent with a micro or small enterprise, and the governance structure appears stable with no disqualifications or liquidation proceedings.

2. Key Concerns:

• Limited operating history: Incorporated in 2022, the company has a short financial track record which restricts long-term trend analysis.
• Director’s loan balance: Although small (£526), the interest-free loan from a director should be monitored to ensure it does not grow to a level that could impact solvency or governance.
• Dividend payments: The company paid out dividends (£47,925 in 2023 and £13,735 in 2024) despite being relatively newly established, warranting review of sustainability of distributions relative to retained earnings and cash flow.

3. Positive Indicators:

• Strong liquidity: Cash balances more than doubled from £25,311 to £54,983 between 2023 and 2024, supporting operational stability and meeting short-term obligations.
• Positive net current assets and shareholders’ funds: These increased from £9,849 to £45,867, reflecting retained earnings accumulation and healthy working capital.
• Compliance: No overdue filings and clear documentation of accounting policies and directors’ responsibilities demonstrate sound governance practices.
• Small employee base (2 staff) aligns with the company’s micro/small size, potentially enabling tight cost control.

4. Due Diligence Notes:

• Review detailed profit and loss information (not included) to assess revenue trends, cost control, and profitability sustainability.
• Verify the basis and rationale for dividend distributions given the company’s early stage and retained earnings profile.
• Monitor director-related transactions, especially the loan balance and any future changes, for potential conflicts of interest or cash flow impact.
• Confirm any contingent liabilities or off-balance sheet exposures not captured in the accounts.
• Assess client concentration and revenue diversification within the general medical practice sector (SIC 86210).