Company Number: 12732629

Analysis Date: 2025-07-20 18:37 UTC

1. Risk Rating: MEDIUM
   The company is active and compliant with filing deadlines, which is positive. However, the extremely low net assets (£1) and minimal share capital (£1) despite having turnover and staff costs indicate weak capitalization and potentially fragile financial health. This raises moderate solvency and liquidity concerns for investors.

2. Key Concerns:

• Minimal Net Assets: Net assets remain at £1 over multiple years, suggesting the company has essentially no equity buffer to absorb losses or debts.
• Thin Capitalization: Share capital is only £1, which is very low given the company operates in multiple service sectors and employs staff.
• Profit Margins and Cash Flow: The 2024 profit is just £47 on a turnover of £35,528, with staff costs of £32,973, indicating extremely tight margins and potential liquidity strain.

3. Positive Indicators:

• Filing Compliance: Accounts and confirmation statements are up to date with no overdue filings, reflecting good regulatory compliance and governance.
• Active Business Operations: The company reports turnover and employs an average of 2 staff, indicating ongoing trading activity.
• No Indication of Insolvency: The company is not in liquidation or administration and shows a very small profit in the latest period.

4. Due Diligence Notes:

• Review detailed cash flow statements and creditor aging to assess liquidity and short-term obligations.
• Investigate the nature of fixed and current assets to understand the tangible backing for liabilities.
• Assess the director’s background and capacity to support the company financially if needed.
• Confirm no related party transactions or contingent liabilities exist off balance sheet.
• Evaluate the business model sustainability given low profitability and minimal equity.