Company Number: 12507921

Analysis Date: 2025-07-29 14:27 UTC

1. Risk Rating: LOW
   The company demonstrates a solid net asset position with positive working capital and no overdue filings. It operates within a micro-entity reporting framework, which limits financial disclosure but the available data suggests financial stability and ongoing compliance.

2. Key Concerns:

• Declining Fixed Assets: Fixed assets decreased from £2,620 in 2023 to £1,965 in 2024, which may indicate asset disposals or underinvestment in long-term resources.
• Director Advances: The director has a small outstanding credit balance of £450 owed to the company, which should be monitored for any changes that might affect liquidity or governance.
• Employee Numbers: A slight reduction in average employees from 5 to 4 could indicate operational scaling or efficiency gains but should be reviewed to understand the impact on business capacity.

3. Positive Indicators:

• Strong Net Current Assets: The company holds £16,897 in net current assets as of 2024, indicating healthy short-term liquidity to meet obligations.
• Positive Net Assets and Shareholders Funds: Increased from £16,990 in 2023 to £17,413 in 2024, reflecting retained earnings or capital injections supportive of solvency.
• Timely Filings: No overdue accounts or confirmation statements, showing regulatory compliance and good governance practices.

4. Due Diligence Notes:

• Review the nature of the fixed asset reduction to assess if it impacts operational capabilities or is part of planned restructuring.
• Clarify the director advance account to ensure transparency and confirm it does not conceal any financial strain or related party risks.
• Investigate any strategic plans related to workforce changes to confirm that operational stability is maintained.
• Confirm the company’s cash flow cycle and supplier/customer terms given the retail confectionery industry to anticipate any seasonality or liquidity fluctuations.