Company Number: 13527518

Analysis Date: 2025-07-29 20:05 UTC

1. Risk Rating: MEDIUM
   The company shows positive net current assets, indicating it can meet short-term obligations currently. However, a significant reduction in net assets from £1,579 to £497 within one year and the presence of accruals/deferred income suggest potential liquidity pressure or deferred revenue recognition. The micro-entity status limits the depth of financial disclosure, restricting full assessment.

2. Key Concerns:

• Declining Net Assets: The drop in net assets by approximately 68% in the last year could indicate reduced profitability or capital erosion.
• Low Working Capital Buffer: Net current assets remain positive but have shrunk, leaving a narrow margin to cover current liabilities.
• Limited Financial Transparency: As a micro-entity, the company benefits from simplified reporting, so detailed profit and loss or cash flow data is unavailable, limiting insight into operational sustainability.

3. Positive Indicators:

• Compliance: The company is active with up-to-date filings; no overdue accounts or confirmation statements are noted, demonstrating regulatory adherence.
• Ownership and Control: The shareholding and voting rights are well-distributed among three directors, which may promote stable governance.
• Stable Employment: The average number of employees has remained constant at two over the last two years, indicating operational continuity.

4. Due Diligence Notes:

• Investigate the reason for the significant decline in net assets, including any extraordinary expenses or impairments.
• Request management accounts or cash flow statements to assess actual liquidity and cash generation capability.
• Clarify the nature of accruals and deferred income to understand timing of cash inflows and outflows.
• Confirm absence of contingent liabilities or off-balance sheet obligations that may impact solvency.
• Review directors' background and related party transactions given the family-like shareholding and directorship structure.