Company Number: 12793365

Analysis Date: 2025-07-20 15:47 UTC

1. Risk Rating: MEDIUM
   The company demonstrates modest net current assets and improving net asset position, indicating some financial stability. However, the relatively low share capital and significant current liabilities suggest moderate solvency and liquidity risk. The absence of audit requirements (due to size) limits transparency.

2. Key Concerns:

• Current liabilities remain substantial (£87,617 in 2024) relative to current assets (£101,735), resulting in modest net working capital (£14,118), which could constrain liquidity under stress.
• Significant corporation tax creditors (£35,519) and other creditors (£36,104) indicate sizeable short-term obligations that require careful cash flow management.
• The company’s small capital base (£300 share capital) coupled with limited equity (£31,754 net assets) may constrain its ability to absorb financial shocks or invest for growth.

3. Positive Indicators:

• Net assets have roughly doubled from £15,457 in 2023 to £31,754 in 2024, reflecting retained earnings and potential profitability.
• Cash position remains healthy (£69,132), providing a buffer for short-term liabilities.
• Directors have maintained timely filing compliance with no overdue accounts or confirmation statements, indicating good governance practices.
• The company employs a small, stable workforce (3 employees), consistent with its micro/small size and potentially manageable operating costs.

4. Due Diligence Notes:

• Review the company’s profit and loss account and cash flow statements (not filed publicly) to assess profitability trends and cash generation capacity.
• Investigate the nature and aging of trade debtors (£30,235) to evaluate collectability risks.
• Examine the composition of other creditors (£36,104) and tax liabilities to understand payment terms and any potential disputes.
• Assess the directors’ strategic plans for managing working capital and funding growth, especially given limited equity and modest net current assets.
• Confirm no director disqualifications or compliance issues through official registers as none are indicated here.