Company Number: 12782904

Analysis Date: 2025-07-20 15:08 UTC

1. Risk Rating: MEDIUM
   The company shows positive net current assets and shareholders’ funds as of the latest accounts, indicating solvency. However, the low cash balance relative to current liabilities and declining net current assets since the prior year introduce liquidity concerns that warrant monitoring.

2. Key Concerns:

• Liquidity pressure: Cash on hand is only £1,023 against current liabilities of £41,027, suggesting potential short-term cash flow constraints despite positive net current assets.
• Declining net current assets: Net current assets have decreased from £13,750 in 2023 to £5,494 in 2024, indicating a reduction in working capital buffer.
• No employees: The company reported no employees in the year, raising questions on operational scale and sustainability if reliant solely on directors or contractors.

3. Positive Indicators:

• Solvency maintained: Shareholders’ funds remain positive at £5,494, showing the company’s net asset position is above zero.
• No overdue filings: Financial accounts and confirmation statements are filed on time, indicating compliance with statutory obligations.
• Consistent directors: Two directors have been in place since incorporation with no disqualifications noted, suggesting stable governance.

4. Due Diligence Notes:

• Review the company’s cash flow statements and forecasts to assess short-term liquidity management and ability to meet immediate obligations.
• Clarify the nature of the trade debtors and collectability given the significant increase to £19,695 in 2024 from £5,580 in 2023.
• Investigate operational model given no employees reported—determine reliance on contractors or director effort and implications for scalability.
• Confirm the extent and nature of “other creditors” (£17,053), to understand potential liabilities or related party balances.
• Evaluate the company’s revenue trends and profitability (not disclosed in detail here) to assess ongoing business viability.