Company Number: 13888795

Analysis Date: 2025-07-20 19:04 UTC

1. Risk Rating: MEDIUM
   The company shows modest turnover growth but reports an operating loss and a significant reduction in cash reserves over the last year. The low net asset base and limited current assets pose moderate solvency and liquidity risks for an investor.

2. Key Concerns:

• Operating Loss: The company posted a loss of £2,241 for the 2024 financial year, indicating it is not yet profitable and may be burning cash.
• Diminished Liquidity: Cash at bank dropped sharply from £2,441 in 2023 to £200 in 2024, raising concerns about short-term cash flow sufficiency.
• Low Asset Base: Net assets declined from £1,441 to £300 year-over-year, driven largely by reduced current assets and a loss, which may constrain operational flexibility.

3. Positive Indicators:

• Increasing Turnover: Revenue increased from £19,831 in 2023 to £42,253 in 2024, suggesting growing market traction.
• Compliance: The company is active, current with its filings, and not in liquidation or administration, reflecting good regulatory standing.
• Sole Control: A single director/majority shareholder simplifies governance and decision-making.

4. Due Diligence Notes:

• Investigate the nature of the intangible asset (£100 goodwill) and the basis for the £2,441 revaluation reserve to confirm valuation accuracy.
• Assess cash flow projections and working capital management to understand how the company plans to address liquidity constraints.
• Review detailed operational plans and cost controls given the operating loss and low profitability margin.
• Confirm no off balance sheet liabilities or contingent risks beyond those disclosed.
• Consider background checks on the sole director and owner for any reputational or governance risk.