Company Number: 13952195

Analysis Date: 2025-07-20 15:10 UTC

1. Risk Rating: LOW
   The company demonstrates solid net current assets and positive net assets for a micro-entity with no overdue filings and a stable director structure. Though relatively new, financial indicators suggest it can meet short-term obligations.

2. Key Concerns:

• Declining net assets year-on-year: Net assets decreased from £133,404 (2024) to £107,443 (2025), suggesting some erosion of equity that merits monitoring.
• Small scale of operations: As a micro entity with only 2 employees, the company may face operational risks and limited diversification of revenue sources.
• Concentrated control: One individual holds 75-100% share and voting rights, which could pose governance risks if the sole controlling party’s circumstances change.

3. Positive Indicators:

• Positive net current assets in all years: £104,759 as of 31 March 2025 indicates liquidity adequacy to cover short-term liabilities.
• No overdue statutory filings: Both accounts and confirmation statement are filed timely, indicating good compliance culture.
• Increasing staffing: Average employees increased from 1 to 2, suggesting some operational growth or capacity increase.
• Consistent positive shareholder equity: Shareholders’ funds remain positive and substantial relative to company size.

4. Due Diligence Notes:

• Investigate causes for the reduction in fixed assets and net assets between 2024 and 2025 to understand if this is due to asset disposals, losses, or other factors.
• Review cash flow statements (not provided) to ensure that liquidity is supported by operating cash flows, not just asset liquidation or short-term financing.
• Confirm the business model sustainability given the small size, market niche (SIC 74909), and dependence on a single controlling shareholder.
• Assess director experience and background further to confirm governance robustness given concentrated shareholding.
• Verify any off-balance sheet liabilities or contingent risks not captured in micro-entity accounts.