Company Number: 12845610

Analysis Date: 2025-07-20 17:25 UTC

1. Risk Rating: MEDIUM
   The company shows positive net assets and shareholder funds, indicating solvency, but the very low net current assets and a significant drop in cash reserves year-on-year raise moderate liquidity concerns.

2. Key Concerns:

• Liquidity: Cash at bank declined sharply from £20,875 in 2023 to £9,689 in 2024, while current liabilities remain high (~£58k), leaving only marginal net current assets (£736). This tight working capital position could strain the company's ability to meet short-term obligations.
• Profitability and Reserves Decline: Shareholders' funds have decreased from £9,644 in 2023 to £6,157 in 2024, indicating accumulated losses or distribution of reserves, which may impact financial stability.
• Small Size and Limited Capital: The company has minimal share capital (£1) and employs only 2-3 persons, which may limit operational scalability and resilience.

3. Positive Indicators:

• Compliance: No overdue filings for accounts or confirmation statements, indicating good regulatory compliance and governance.
• Solvency: Positive net assets and shareholder funds, even after the recent decline, show the company remains solvent.
• Industry Presence: Active website with customer engagement channels and social media presence suggests ongoing business operations and marketing efforts.

4. Due Diligence Notes:

• Investigate the cause of the decline in cash reserves and net assets; review profit and loss trends to assess operational profitability and cash flow management.
• Examine debtor aging and credit control measures, given the relatively stable but material debtor balances.
• Review lease commitments and other off-balance-sheet liabilities, especially given leasehold improvements as fixed assets.
• Assess the impact of low employee numbers on operational capacity and succession planning.
• Confirm the accuracy and completeness of the financial statements, considering the exemption from audit.