Company Number: 13658955

Analysis Date: 2025-07-20 18:56 UTC

1. Risk Rating: MEDIUM
   The company shows signs of improving financial position after prior years of weak liquidity. However, limited scale, low share capital, and a history of negative net current assets raise caution.

2. Key Concerns:

• Liquidity Fluctuations: In FY 2023, the company had negative net current assets (£-1,476), indicating potential short-term liquidity stress, although this improved in FY 2024 to £24,439.
• Low Share Capital: The nominal share capital of only £5 suggests minimal equity buffer to absorb losses or support operations.
• Concentration of Control: Two directors hold significant control (25-50% shares and voting rights each). This concentration may pose governance and succession risks for investors.

3. Positive Indicators:

• Improved Net Assets: Net assets increased substantially from £10,112 (2023) to £47,360 (2024), reflecting better financial health.
• Current Liabilities Reduced: Current liabilities decreased significantly from £96,741 to £50,410, easing short-term obligations.
• Consistent Employment: The company maintained an average of 2 employees, indicating operational consistency.

4. Due Diligence Notes:

• Review detailed cash flow statements and creditor aging to assess liquidity trends and working capital management.
• Confirm the nature and timing of the reduced current liabilities between 2023 and 2024 to ensure no one-off or deferred liabilities.
• Evaluate the governance structure given the large control by two individuals and absence of independent directors or secretarial oversight beyond a director acting as secretary.
• Investigate the reasons behind the low share capital and whether capital injection or restructuring is planned.
• Confirm compliance with filing deadlines has been consistent (currently no overdue filings).