Company Number: 12891426

Analysis Date: 2025-07-20 16:40 UTC

1. Risk Rating: LOW
   The company shows a solid net current asset position and positive shareholder equity in its first financial year. There are no overdue filings or indications of financial distress, suggesting a low immediate risk profile.

2. Key Concerns:

• Limited financial history: Only one accounting period is available, which restricts trend analysis and assessment of operational consistency.
• Intangible asset risk: The company holds £9,000 in goodwill, which requires ongoing impairment testing and could pose a risk if the expected cash flows do not materialize.
• Single employee and shareholder concentration: The business is small with only one employee and a sole controlling shareholder, which could present operational risk if key person dependency issues arise.

3. Positive Indicators:

• Positive net current assets (£24,607) and net assets (£33,607) indicate the company can meet short-term liabilities comfortably.
• No overdue statutory filings or compliance issues detected, reflecting good governance and regulatory adherence.
• Cash on hand (£80,066) covers current liabilities, supporting liquidity and operational stability.
• The company operates in the physical well-being sector, a service area with ongoing demand potential.

4. Due Diligence Notes:

• Obtain updated financial statements beyond the first year to evaluate growth, profitability, and cash flow trends.
• Review impairment testing procedures and assumptions related to goodwill to assess potential write-down risks.
• Investigate operational dependencies on the single employee/director and the potential impact of key person risk.
• Assess revenue recognition practices and customer concentration to evaluate sustainability of income streams.