Company Number: 12822048

Analysis Date: 2025-07-20 15:48 UTC

1. Risk Rating: LOW

   Justification: CHELMSFORD BALLOONS LTD demonstrates a stable financial position with positive net assets, no overdue filings, and consistent shareholder equity growth. The company is active, compliant with filing deadlines, and benefits from a micro-entity reporting framework, suggesting a small but manageable scale of operations. There are no indicators of insolvency or liquidity distress.

2. Key Concerns:

   • Limited Financial Disclosure: As a micro-entity, the company provides minimal financial detail, limiting insights into profitability, cash flow, and detailed liabilities.
   • Small Asset Base and Scale: Fixed assets are low (£8,365 in 2024), indicating limited capital investment which may constrain operational scalability or resilience in adverse conditions.
   • Change in Director and Control Structure: The departure of a director and changes in shareholding/control percentages warrant attention to governance continuity and decision-making dynamics.

3. Positive Indicators:

   • Strong Net Current Assets: Current assets exceed current liabilities by a comfortable margin (£27,869 vs £12,687 in 2024), indicating good short-term liquidity.
   • Growing Shareholders’ Funds: Equity more than doubled from £11,354 in 2023 to £23,547 in 2024, suggesting retained earnings or capital injections strengthening the balance sheet.
   • Compliance and Timeliness: No overdue accounts or confirmation statement filings; company remains in good standing with Companies House.
   • Consistent Employment: Maintaining an average of 5 employees demonstrates operational continuity.

4. Due Diligence Notes:

   • Profitability and Cash Flow: Obtain detailed profit and loss statements and cash flow data to assess operational sustainability beyond balance sheet snapshots.
   • Ownership and Governance: Clarify changes in shareholding and control, particularly the relationship and interests between Mr. Jamie Maytum and the departing Mr. Peter Florey.
   • Business Model Viability: Review commercial contracts and sales data to confirm the company’s ability to generate sustainable revenues in its retail hardware niche.
   • Contingent Liabilities or Off-Balance Sheet Items: Investigate any potential liabilities not reflected in the micro-entity accounts.