Company Number: 14416462

Analysis Date: 2025-07-29 20:18 UTC

1. Risk Rating: MEDIUM
   The company shows a decline in net assets from £4,696 in 2023 to £967 in 2024, indicating weakening solvency. Current liabilities exceed current assets, resulting in negative net current assets for 2024, which raises liquidity concerns. However, the company is still active, compliant with filings, and relatively young, which tempers the risk somewhat.

2. Key Concerns:

• Declining net assets and equity position suggest decreasing financial strength and potential solvency risk.
• Negative net current assets (£3,560) as of March 2024 indicate potential short-term liquidity issues and difficulty meeting immediate obligations.
• Small scale and limited asset base (micro-entity category) may limit operational flexibility and resilience to financial shocks.

3. Positive Indicators:

• The company remains current with all statutory filings, reducing regulatory compliance risk.
• Ownership and management are unified under a single director and controlling shareholder, which can enable swift decision-making.
• The company has maintained a stable employee base (2 employees), which suggests operational continuity.

4. Due Diligence Notes:

• Review cash flow statements and bank balances to assess actual liquidity and ability to cover short-term liabilities.
• Investigate reasons for the significant reduction in net assets and fixed assets over the last year.
• Evaluate the business model and contracts to confirm revenue stability and growth prospects given the negative working capital situation.
• Confirm no hidden contingent liabilities or off-balance sheet obligations given the small scale of the business.