Company Number: 13584088

Analysis Date: 2025-07-29 12:41 UTC

1. Risk Rating: MEDIUM
   The company shows a positive net asset position and shareholder funds, which supports solvency. However, the significant decline in current assets between 2023 and 2024 combined with a still relatively high level of current liabilities raises liquidity concerns. The company is a micro-entity with limited financial disclosures, restricting a full risk assessment.

2. Key Concerns:

• Liquidity Deterioration: Current assets dropped from £121,875 in 2023 to £63,484 in 2024, while current liabilities remain substantial at £39,968, indicating tighter working capital.
• Small Scale and Limited Financial History: Incorporated in 2021, the company has a short operating history and limited financial data, which limits trend analysis and risk predictability.
• Director Turnover: One director resigned on the incorporation date, leaving a single current director managing the company; this concentration of control may pose governance risks.

3. Positive Indicators:

• Positive Shareholders’ Funds: Equity increased from £36,691 in 2023 to £42,601 in 2024, suggesting retained earnings or capital injection.
• No Filing or Compliance Issues: Accounts and confirmation statements are filed on time with no overdue filings, reflecting good regulatory compliance.
• Employment Growth: Average employees increased from 2 to 3, indicating some operational expansion.

4. Due Diligence Notes:

• Investigate the nature of the decline in current assets—whether driven by cash depletion, receivables collection issues, or inventory changes.
• Review detailed cash flow statements if available to assess liquidity trends and operational cash generation.
• Assess the governance framework given the single active director and absence of company secretary.
• Confirm the nature and extent of fixed assets acquired in 2024 and their impact on cash flow and operations.