Company Number: 13937442

Analysis Date: 2025-07-29 20:19 UTC

1. Risk Rating: MEDIUM
   The company shows positive net current assets and shareholders’ funds, indicating some solvency. However, the presence of significant long-term creditors and a decline in net assets raises caution about long-term financial stability and liquidity management.

2. Key Concerns:

• Long-Term Creditors: The company reported £9,746 in long-term liabilities in 2024, which were not present in 2023. This increase may indicate reliance on external financing or deferred obligations that could pressure future cash flows.
• Declining Net Assets: Net assets decreased from £20,137 in 2023 to £12,352 in 2024, suggesting a reduction in equity possibly due to losses or distributions, which could affect solvency.
• Limited Financial History and Small Scale: As a micro-entity incorporated in 2022 with only three employees, financial data is limited. This restricts trend analysis and increases uncertainty around operational sustainability.

3. Positive Indicators:

• Positive Working Capital: Net current assets remain positive (£19,098 in 2024), indicating the company can meet short-term liabilities with current assets.
• No Overdue Filings: Both accounts and confirmation statements are up to date, reflecting good regulatory compliance.
• Stable Management and Control: Directors and persons with significant control appear consistent with no adverse records, suggesting stable governance.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors introduced in 2024 to assess repayment obligations and impact on cash flow.
• Review profitability or loss data (not filed with Companies House) to understand causes of net asset decline.
• Confirm management plans for growth and cash flow management given the micro-entity status and limited financial history.
• Verify no related party transactions or director loans that could affect financial stability.