Company Number: 13813140

Analysis Date: 2025-07-29 16:45 UTC

1. Risk Rating: LOW to MEDIUM
   The company is a micro-entity with modest but improving net assets and net current assets as of the latest accounts. There are no overdue filings or indications of insolvency. However, the absolute level of net assets and working capital remains low, which may constrain operational flexibility.

2. Key Concerns:

• Thin Net Assets and Working Capital: Net assets of £560 and net current assets of £460 at 2023 year-end are very low, indicating limited buffer to absorb financial shocks or unexpected liabilities.
• Limited Financial Disclosure: As a micro-entity, the company files abridged accounts with limited financial detail, restricting thorough risk assessment.
• Single Director and PSC Concentration: Full ownership and control by one individual presents governance concentration risk and potential lack of independent oversight.

3. Positive Indicators:

• Improving Financial Position: The company moved from negative net assets (-£213) in 2022 to positive net assets (£560) in 2023, showing signs of financial improvement.
• Timely Filing and Compliance: No overdue accounts or confirmation statements, indicating good regulatory compliance and governance discipline.
• Going Concern Confirmation: The director’s statement affirms a reasonable expectation of continuing operations based on sales growth and profitability.

4. Due Diligence Notes:

• Review detailed cash flows and profitability trends if available outside the abridged accounts to confirm sustainability of growth claims.
• Verify the nature and timing of current liabilities to assess short-term liquidity risk.
• Investigate the background and track record of the sole director/owner to understand operational and governance risks.
• Consider whether reliance on a single employee (director) affects business continuity and operational capacity.
• Confirm absence of any undisclosed contingent liabilities or related-party transactions.