Company Number: 13438013

Analysis Date: 2025-07-20 17:26 UTC

1. Risk Rating: MEDIUM
   The company shows modest net assets and positive shareholders' funds which indicate solvency at the balance sheet date. However, the very low cash balance relative to current liabilities and stagnant debtor balances raise moderate liquidity concerns. The small scale and recent incorporation also suggest operational risks typical of early-stage businesses.

2. Key Concerns:

• Liquidity Risk: Cash on hand is only £140 against current liabilities of £6,553 as at June 2024, indicating potential cash flow pressure to meet short-term obligations.
• Debtor Concentration and Stagnation: Debtors remain constant at £8,626 for two consecutive years with no movement, which may imply collection difficulties or related party balances not being settled.
• Limited Financial History and Scale: Incorporated in 2021, the company is relatively young with minimal share capital (£1) and small net asset base (£3,038), which may limit resilience against market or operational shocks.

3. Positive Indicators:

• Positive Net Assets and Shareholders' Funds: Net assets increased from £2,638 in 2023 to £3,038 in 2024, showing some retained earnings and capital growth.
• Timely Filing and Compliance: Accounts and confirmation statements are up to date with no overdue filings, indicating regulatory compliance and good governance practices.
• Stable Employment Numbers: Increase from 4 to 5 employees suggests some operational growth and business activity continuity.

4. Due Diligence Notes:

• Investigate the nature and collectability of the static debtor balance of £8,626 to assess credit risk or related party transactions.
• Review cash flow statements and bank statements to understand liquidity management and short-term funding sources.
• Obtain details on revenue trends, profitability, and customer base to ascertain operational sustainability beyond the balance sheet.
• Confirm no director disqualifications or adverse governance issues given sole director structure.
• Evaluate any contingent liabilities or off-balance sheet commitments not reflected in the filed accounts.