Company Number: 14252907

Analysis Date: 2025-07-20 14:10 UTC

1. Risk Rating: MEDIUM
   The company's financial position has improved significantly over the latest year, moving from negative net assets (£-3,620 in 2023) to positive net assets (£2,835 in 2024). However, the absence of cash at year end and reliance on debtors as current assets raises some liquidity concerns. Given the company is relatively new (incorporated in 2022) and small in scale, caution is warranted.

2. Key Concerns:

• Liquidity risk: As of 31 July 2024, the company reported zero cash reserves and current assets are entirely debtors (£31,484), which may present cash flow timing challenges to meet current liabilities (£29,736).
• High current liabilities relative to assets in prior year: The 2023 accounts showed negative net current assets (£-4,533) and negative net assets, indicating historical solvency pressure.
• Limited scale and operational history: Incorporated in mid-2022 with one director and one employee, the company’s operational track record is very short, limiting visibility on sustainable profitability and cash generation.

3. Positive Indicators:

• Improved financial position in 2024: The company has moved to positive net assets and net current assets, indicating progress in financial stability.
• No overdue filings or regulatory issues: Accounts and confirmation statements are up to date, showing compliance with Companies House filing requirements.
• Single experienced director with financial advisory occupation: The director’s background may support sound governance and operational oversight.

4. Due Diligence Notes:

• Investigate the nature and collectability of the debtors recorded in 2024, including aging and counterparty credit quality.
• Review cash flow statements or management accounts to assess ongoing liquidity management and ability to convert receivables into cash promptly.
• Understand the sources of financing contributing to current liabilities, especially bank loans and overdrafts, and their terms.
• Clarify business model and revenue generation since turnover figures are not provided in the accounts excerpt.
• Confirm ongoing operational viability and any plans for scaling or additional capital injection.