Company Number: 12714070

Analysis Date: 2025-07-29 14:34 UTC

1. Risk Rating: LOW
   The company shows a solid net asset position, positive working capital, and no overdue filings. Despite very low cash balances in 2024, significant debtor balances and a stable equity base mitigate immediate solvency concerns.

2. Key Concerns:

• Low Cash Reserves: Cash on hand dropped substantially from £3,290 in 2023 to £129 in 2024, which could indicate liquidity management issues or delayed cash collection.
• High Debtor Concentration: Debtors represent the bulk of current assets (£23,734) which may pose collection risk and impact liquidity if payments are delayed.
• Minimal Share Capital: The company’s share capital is nominal (£4), which offers limited equity buffer to absorb losses or finance expansion.

3. Positive Indicators:

• Positive Net Current Assets: The company maintains a comfortable working capital surplus (£13,444 in 2024), indicating current liabilities are well covered by short-term assets.
• Stable Net Assets and Equity Growth: Net assets and shareholders’ funds have increased over time, suggesting retained earnings accumulation and sound financial structure.
• No Overdue Statutory Filings: The company is compliant with filing deadlines for both accounts and confirmation statements, reflecting good governance and regulatory adherence.
• Registered Director and Secretary in Place: Clear management appointments with no disqualifications noted, supporting operational stability.

4. Due Diligence Notes:

• Verify the age and collectability of the debtor balances to assess liquidity risk more accurately.
• Review cash flow statements or bank reconciliations to understand the sharp decrease in cash holdings and confirm operational cash sufficiency.
• Examine turnover and profitability trends (not disclosed here) to assess sustainability of earnings and operational viability.
• Confirm that no contingent liabilities or off-balance sheet financial obligations exist that might impact solvency.
• Investigate the reason for low share capital and whether additional capital injections or financing arrangements are planned or necessary.