Company Number: 13125931

Analysis Date: 2025-07-20 13:58 UTC

1. Risk Rating: MEDIUM
   The company shows a modest net asset position and positive net current assets as of its latest accounts, indicating a basic ability to meet short-term obligations. However, the small scale, relatively low equity, and fluctuations in net assets suggest moderate solvency risks. The micro-entity scale and limited financial disclosures restrict a complete risk assessment.

2. Key Concerns:

• Equity Fluctuations: Net assets declined sharply from £4,976 (2023) to £2,544 (2024), indicating potential erosion of shareholder funds which may point to operational challenges or losses.
• Current Liabilities vs. Assets: Although net current assets are positive (£10,716), current liabilities remain significant (£8,172), necessitating careful liquidity management.
• Minimal Fixed Assets: Zero fixed assets in the latest year may indicate limited capital investment or asset base, which could impact business sustainability and borrowing capacity.

3. Positive Indicators:

• Positive Working Capital: Net current assets are positive and have increased compared to prior years, suggesting improved short-term liquidity.
• No Overdue Filings: The company is up to date with both accounts and confirmation statement filings, indicating compliance with regulatory requirements.
• Consistent Employment: Maintains a stable workforce of approximately 4 employees, reflecting operational continuity.

4. Due Diligence Notes:

• Investigate the cause of the reduction in net assets between 2023 and 2024, including profitability and any extraordinary expenses or losses.
• Review detailed cash flow statements to assess liquidity trends beyond balance sheet snapshots.
• Understand the company’s business model and revenue streams within the employment placement agency sector to evaluate sustainability and growth prospects.
• Verify if there are any contingent liabilities or off-balance-sheet commitments not reflected in the micro-entity accounts.
• Assess the background and track record of the sole director for governance and management quality.