Company Number: 13834327

Analysis Date: 2025-07-20 14:00 UTC

1. Risk Rating: LOW
   The company shows a strong net asset position, healthy net current assets, and no overdue filings. It operates within a micro-entity reporting framework, limiting financial complexity but demonstrating prudent management of liabilities versus assets.

2. Key Concerns:

• Limited Financial History: Incorporated in 2022, the company has only two years of financial data, making trend analysis and long-term stability assessment limited.
• Small Scale Operations: With only 2 employees and micro-entity status, operational scale is modest, which may limit resilience to market fluctuations or shocks.
• Director Concentration: One individual (Mr. Christopher Farrer) holds full ownership and control, which may pose governance and succession risks.

3. Positive Indicators:

• Strong Working Capital: Net current assets rose significantly from £24k to £139k year-on-year, indicating improved liquidity.
• Positive Net Assets: Increased shareholder funds from £25.5k to £139.1k in one year, reflecting capital growth or retained earnings accumulation.
• Compliance: All statutory filings including accounts and confirmation statements are up to date, indicating good regulatory adherence.
• Clear Business Focus: SIC code 95110 aligns with computer repair services, a niche with steady demand potential.

4. Due Diligence Notes:

• Verify the composition of current assets, especially cash versus receivables or inventory, to confirm liquidity quality.
• Review the sources of capital increase—whether from retained profits, additional share capital, or loans converted to equity.
• Assess customer concentration and contract stability given the small employee base.
• Conduct director background check for any undisclosed issues despite no formal disqualifications noted.
• Understand the impact of Covid-19 or supply chain issues on recent performance and future outlook.