Company Number: 13121083

Analysis Date: 2025-07-20 16:27 UTC

1. Risk Rating: MEDIUM
   The company maintains positive net assets and current asset coverage over current liabilities, indicating solvency. However, a significant decline in current assets from £68,945 in 2024 to £15,412 in 2025 raises liquidity concerns. The company's reliance on director support for going concern status further elevates risk.

2. Key Concerns:

• Liquidity Deterioration: Current assets have reduced by approximately 78% year-over-year (2024 to 2025), while current liabilities have decreased less proportionally, potentially signaling cash flow strain.
• Director Dependency: The going concern note explicitly states the company’s operations depend on continued director support, highlighting vulnerability if such support ceases.
• Minimal Scale and Workforce: Operating as a micro-entity with only one employee may limit operational resilience and scalability.

3. Positive Indicators:

• Positive Net Assets: Despite the decline, net assets remain positive at £14,703 as of January 2025, supporting solvency.
• Timely Compliance: No overdue filings are reported for accounts or confirmation statements, reflecting good regulatory compliance.
• Consistent Director and Secretary Appointments: Stable leadership with no director disqualifications or changes, indicating governance continuity.

4. Due Diligence Notes:

• Investigate Nature of Current Asset Decline: Clarify reasons for steep reduction in current assets—whether due to one-off events, changes in receivables, or inventory adjustments.
• Review Director Support Arrangements: Assess the extent and form of director support (financial or otherwise) underpinning going concern status.
• Examine Cash Flow Statements (if available): To better understand liquidity trends and operational cash generation capacity.
• Confirm No Contingent Liabilities: Verify absence of material off-balance-sheet liabilities or potential claims that could impact financial stability.