Company Number: 13903718

Analysis Date: 2025-07-20 16:07 UTC

1. Risk Rating: LOW
   The company demonstrates a positive net asset position with modest but stable net current assets over the last two years. No overdue filings or regulatory compliance issues are evident. The financial profile is consistent with a micro-entity, showing controlled liabilities and positive equity.

2. Key Concerns:

• Limited scale and asset base: With total net assets under £1,000 and current assets declining from £10,231 to £5,616, the business operates at a small scale which may constrain growth and resilience.
• Declining current assets: A near 45% drop in current assets year-on-year could signal tightening liquidity, warranting monitoring to ensure operational cash flow sufficiency.
• Reliance on two directors with equal control: Both directors hold 25-50% shares and voting rights, which may pose governance risks if disagreements arise, given no indication of additional oversight.

3. Positive Indicators:

• Consistent positive net current assets (£1,700+), indicating ability to meet short-term liabilities.
• Up-to-date statutory filings (accounts and confirmation statements) with no overdue status suggests good compliance and governance.
• Stable employee base and clear operating sector focus in social care and human health activities, which can be resilient sectors.

4. Due Diligence Notes:

• Confirm cash flow dynamics and reasons behind the drop in current assets between 2023 and 2024 to assess liquidity risk.
• Review agreements between the two main shareholders/directors to understand decision-making processes and potential conflicts.
• Investigate if the company has any contingent liabilities or off-balance sheet commitments not reflected in the micro-entity accounts.
• Assess revenue and profitability trends, which are not disclosed, to better evaluate ongoing operational sustainability.