Company Number: 13440346

Analysis Date: 2025-07-29 15:34 UTC

1. Risk Rating: MEDIUM
   The company shows an improving solvency position in the latest year with positive net assets of £641, reversing previous years’ net liabilities. However, the very low fixed asset base and volatile current assets and liabilities indicate some operational volatility and potential liquidity risks. The micro-entity status limits the scope of available financial information.

2. Key Concerns:

• Volatile Working Capital: Current assets dropped sharply from £14,730 in 2023 to £1,503 in 2024, with corresponding liabilities falling as well, suggesting inconsistent cash flows or possibly timing differences in receivables/payables.
• Minimal Share Capital: The company has only £1 in share capital, which could limit its financial buffer and ability to raise equity capital if needed.
• Limited Financial Transparency: As a micro-entity, the company benefits from reduced filing requirements, meaning less detailed financial data is publicly available, increasing uncertainty over operational and financial risks.

3. Positive Indicators:

• Improved Net Asset Position: The company moved from a net liability position (-£113) to a net asset position (£641) within a year, indicating some recovery or capital injection.
• No Overdue Filings: Accounts and confirmation statements are up to date, reflecting compliance with regulatory requirements.
• Stable Employment: The average number of employees remained steady at 3, suggesting operational continuity.

4. Due Diligence Notes:

• Investigate the reasons behind the significant drop in current assets and liabilities from 2023 to 2024 to understand cash flow volatility and working capital management.
• Review the company's cash flow statements and bank balances, if available, to assess liquidity beyond balance sheet snapshots.
• Confirm the nature and reliability of revenues given the SIC code (management consultancy) and the minimal fixed assets.
• Verify any off-balance sheet liabilities or contingent obligations not visible in micro-entity filings.
• Examine the background and track record of the sole director, Mrs. Jennifer Jean Kafetz, for governance and operational stability.