Company Number: 13790619

Analysis Date: 2025-07-20 19:06 UTC

1. Risk Rating: MEDIUM
   The company presents marginal net current assets as of the latest financial year (£180) compared to prior years (£3,408 in 2022), indicating a potential tightening of liquidity. Though solvent on a technical basis, the very thin working capital buffer raises concerns about short-term financial resilience.

2. Key Concerns:

• Declining Net Assets and Working Capital: Net assets dropped sharply from £2,798 in 2022 to £180 in 2023, with current assets barely exceeding current liabilities, suggesting reduced financial cushion.
• Limited Scale and Resources: As a micro-entity with only one employee (the director), the company may have limited operational capacity and financial flexibility, increasing vulnerability to adverse events.
• Lack of Audited Financials and Profit & Loss Data: The accounts are unaudited and prepared under micro-entity exemptions, with no P&L filed, reducing transparency on profitability and cash flow dynamics.

3. Positive Indicators:

• Up-to-date Compliance: All statutory filings including accounts and confirmation statements are current and not overdue, indicating good compliance and governance discipline.
• Strong Control Structure: The sole director and 75-100% shareholder is the same individual, Charlene Bastone, which can facilitate swift decision-making and strategic alignment.
• Stable Asset Base: Current assets have increased slightly year-on-year, showing some stability in asset holdings despite the drop in net assets.

4. Due Diligence Notes:

• Investigate the reasons behind the sharp decline in net assets and working capital between 2022 and 2023, including any non-recurring expenses, liabilities, or asset impairments.
• Clarify the company’s revenue generation, profitability, and cash flow position given the absence of a filed profit and loss account.
• Review any off-balance sheet liabilities or contingent risks that could impact solvency.
• Assess operational dependencies given the single director/employee structure and the niche industry focus on raising horses and equines.