Company Number: 13750356

Analysis Date: 2025-07-29 12:56 UTC

1. Credit Opinion: DECLINE. The company is a micro-entity with minimal net assets (£1) and a very thin equity base. The balance sheet shows current assets roughly equal to current liabilities, but significant creditors due after more than one year almost equal to current assets, indicating potential long-term obligations. There is no evidence of profitability or retained earnings to support debt servicing. The size and scale of the business (one employee, director also the sole shareholder) suggest limited operational capacity and financial resilience. Given the minimal financial data and weak capitalization, the company is not currently a reliable credit risk.

2. Financial Strength: The balance sheet reflects a fragile financial position with net assets and shareholder funds at £1, effectively the minimum legal capital. Current assets increased from £3,049 in 2023 to £13,770 in 2024, but current liabilities also increased and long-term creditors nearly offset these assets. The company has no fixed assets reported and is entirely reliant on short-term assets to meet liabilities. The lack of reserves or retained earnings means the company lacks a financial buffer against adverse events or downturns.

3. Cash Flow Assessment: Working capital is positive at £13,370 in 2024 but is largely matched by long-term creditors of £13,369, indicating potential cash flow strain in meeting obligations beyond one year. The company employs only one person (the director) which limits operational complexity but also restricts growth capacity. The absence of profitability data or detailed cash flow statements prevents a thorough liquidity analysis, but given the micro-entity status and minimal equity, liquidity risk is high.

4. Monitoring Points:

• Monitor filing of annual accounts and confirmation statements to ensure regulatory compliance.
• Watch for changes in creditor levels, especially long-term liabilities.
• Track any increase in net assets or shareholder funds to assess capitalization improvement.
• Review operational performance data if available, including turnover and profitability.
• Keep an eye on director conduct and any changes in control or management structure.