Company Number: 12829306

Analysis Date: 2025-07-20 17:28 UTC

1. Risk Rating: LOW
   The company demonstrates a solid net asset base relative to its liabilities, positive working capital, no overdue filings, and recent financial growth, indicating low solvency and liquidity risks.

2. Key Concerns:

• Reliance on Debtors: A significant portion of current assets (approximately 87%) is tied up in debtors (£28,473 of £32,645), which may impact liquidity if collections slow.
• Limited Cash Reserves: Cash on hand is modest (£4,172), which could be a concern for unexpected short-term obligations despite positive net current assets.
• Small Share Capital: Share capital is minimal (£100), which may limit the company’s capacity to absorb large losses without external financing.

3. Positive Indicators:

• Increasing Net Assets and Shareholders’ Funds: Net assets increased from £14,109 in 2023 to £18,785 in 2024, showing growth and retained profitability.
• Positive Working Capital: Net current assets improved significantly to £14,996, indicating the company can meet its short-term liabilities.
• Timely Compliance: All statutory filings, including accounts and confirmation statements, are up to date with no overdue status, reflecting good governance and compliance.
• Stable Management: Presence of a single controlling director with full ownership and voting rights may facilitate decisive management.

4. Due Diligence Notes:

• Investigate the ageing profile of debtors to assess credit risk and potential liquidity impact if collections are delayed.
• Review cash flow statements (not provided) to confirm operational cash generation and adequacy of cash reserves.
• Consider the company’s business model and client concentration to evaluate sustainability of revenues and risk exposure.
• Confirm no undisclosed contingent liabilities or litigation risks that might affect financial stability.
• Validate the adequacy of depreciation policies on fixed assets and any potential impairment risks.