Company Number: 13802843

Analysis Date: 2025-07-29 19:41 UTC

1. Risk Rating: LOW to MEDIUM
   The company shows positive net current assets and net asset position, indicating solvency. However, the decline in net assets from £36,905 in 2023 to £23,722 in 2024 and the limited scale of operations suggest some caution. The business is very small (micro entity) with only one employee (the director), which impacts operational stability and diversification.

2. Key Concerns:

• Declining Net Assets: A drop of approximately 35% in net assets over the latest accounting year may indicate reduced financial buffer or profitability challenges.
• Limited Operational Scale: The company has no fixed assets and only one employee (the director), which may limit resilience and growth potential.
• Concentration of Control: The sole director, who is also the sole significant controller (25-50% shares and voting rights), concentrates governance risk and decision-making, which could impact long-term sustainability and succession.

3. Positive Indicators:

• Solvency Metrics: Positive net current assets (£23,722) and overall net assets imply the company can currently meet its short-term and long-term liabilities.
• Up-to-Date Filings: Accounts and confirmation statements are filed timely with no overdue status, reflecting good regulatory compliance.
• Micro-Entity Status: Reduced filing and audit requirements suggest a simple corporate structure and potentially lower operating costs.

4. Due Diligence Notes:

• Financial Trends: Investigate reasons behind the decline in net assets and current liabilities increase. Review profit and loss accounts if available to understand revenue and expense trends.
• Customer and Revenue Base: Since limited data is available, assess revenue streams and client concentration to evaluate operational stability.
• Director’s Background: Confirm the director’s capability and plans for business continuity given the single-person operation and control concentration.
• Cash Flow: While net current assets are positive, detailed cash flow statements would help identify liquidity risks, especially given the absence of fixed assets.