Company Number: 13910259

Analysis Date: 2025-07-20 13:49 UTC

1. Risk Rating: MEDIUM
   The company has shown an improvement in net current assets from a slightly negative position to a positive balance within one year, indicating some recovery in liquidity. However, the overall scale of assets and net assets remains modest given the company’s micro-entity status and recent incorporation. The limited financial history and small size moderate the risk rating to medium.

2. Key Concerns:

• Limited financial history: Incorporated in 2022, so only two full years of accounts are available, restricting trend analysis and financial stability assessment.
• Marginal working capital position in initial years: The 2023 accounts showed net current liabilities, indicating a potential liquidity crunch in the first full year.
• Concentration of control: All four directors are also significant shareholders with roughly equal ownership, which could pose governance risks if disagreements arise or if the board lacks independent oversight.

3. Positive Indicators:

• Improvement in net current assets: The company increased net current assets from -£1,290 in 2023 to £39,431 in 2024, suggesting an enhancement in short-term financial health.
• Compliance with filing deadlines: Both accounts and confirmation statement are up to date with no overdue filings, indicating good regulatory compliance so far.
• Modest employee base: With only 2 employees in 2024, operational costs are likely controlled, which aligns with the micro-entity status and may support sustainability in early growth phases.

4. Due Diligence Notes:

• Examine detailed cash flow statements and any financing arrangements to understand liquidity improvements and cash management strategies.
• Review the nature and valuation of current assets to confirm their realizability and support for working capital.
• Investigate governance practices given the equal shareholding among directors, including any shareholder agreements or dispute resolution mechanisms.
• Confirm no related party transactions or director loans that could affect financial stability or regulatory compliance.
• Monitor subsequent financial periods for continued improvement or emerging liquidity issues.