Company Number: 14366641

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

1. Risk Rating: LOW
   The company demonstrates positive net assets, a growing equity base, and no overdue filings. The financial statements indicate stability with no significant liabilities beyond short-term creditors, and no indication of insolvency or liquidity distress.

2. Key Concerns:

• Significant decline in current assets from £70,199 in 2023 to £16,357 in 2024, which may indicate reduced cash or receivables and potential liquidity pressure.
• Increase in fixed assets from £1,227 to £39,458 within one year requires further review to understand the nature and financing of these investments and their impact on cash flow.
• Provisions for liabilities of £229 in 2024, while small, introduce a minor contingent liability that should be clarified.

3. Positive Indicators:

• Net assets have increased substantially from £30,358 in 2023 to £52,853 in 2024, reflecting retained earnings or capital injections and an improving equity position.
• The company is current with all statutory filings (accounts and confirmation statements) indicating good regulatory compliance and governance.
• Share capital and shareholder funds correspond, with a clear majority control by a single individual, facilitating decisive management.
• The company has grown its workforce from 2 to 4 employees, indicating operational expansion.

4. Due Diligence Notes:

• Investigate the reasons behind the sharp reduction in current assets and whether this affects ongoing liquidity and working capital needs.
• Review the nature and funding of the increased fixed assets to understand whether these are productive assets or potential sunk costs.
• Clarify the nature of the provisions for liabilities and their expected impact on future cash flows.
• Confirm the company’s revenue streams and profitability trends as these are not disclosed in the micro-entity accounts.
• Assess the impact of the recent resignation of one director and any related operational or governance implications.
• Validate that the controlling person (PSC) does not have adverse records or restrictions impacting company stability.