Company Number: 12904305

Analysis Date: 2025-07-20 15:30 UTC

1. Risk Rating: MEDIUM
   The company has shown a turnaround from net liabilities to net assets in the latest year, supporting solvency improvement. However, the absolute asset base and working capital remain modest, and historical negative equity raises caution.

2. Key Concerns:

• Historical losses and negative shareholders’ funds persisted for several years until the recent financial year, indicating prior financial stress.
• Current liabilities remain significant relative to cash and current assets, suggesting limited liquidity headroom.
• Reliance on a single director and shareholder with full control may pose governance concentration risk.

3. Positive Indicators:

• The latest accounts show a positive net asset position of £2,310 and net current assets of £2,132, a material improvement over prior years.
• Cash balances have increased steadily to £10,211, indicating better cash management or capital injection.
• The company is up to date with statutory filings and accounts, showing compliance with regulatory requirements.
• Operating in the insurance broker sector (SIC 66220) with an active website and contact details suggests ongoing business activities.

4. Due Diligence Notes:

• Investigate the drivers behind the turnaround from negative to positive net assets—was this due to new capital injection, operational improvements, or one-off items?
• Assess the sustainability of cash flow given the current liabilities and wage obligations, especially the director’s loan account balance and net wages.
• Confirm the single director’s background and capacity to manage and grow the business without governance risks.
• Review any contingent liabilities or off-balance-sheet exposures not visible in the accounts.