Company Number: 12812232

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

1. Risk Rating: LOW
   The company presents a stable financial position based on the latest accounts, with positive net current assets and net assets. There are no indications of insolvency or liquidity distress. The company is active, up to date with filings, and its scale and financials suggest low risk.

2. Key Concerns:

• Limited cash reserves: The company holds a low cash balance (£639 at 31 March 2024), which could impact short-term liquidity if receivables are delayed.
• Director’s loan fluctuations: The director’s loan account shows large repayments and a small outstanding balance; the nature and timing of these transactions warrant review to understand cash flow implications.
• Small scale: With only one employee and modest turnover implied by exemption filing status, the company may be vulnerable to operational risks such as key person dependency or market fluctuations.

3. Positive Indicators:

• Positive net current assets (£15,270) and net assets (£16,959) indicate the company’s ability to meet short-term obligations and maintain solvency.
• Consistent debtor levels and controlled current liabilities suggest stable working capital management.
• Up to date statutory filings, including accounts and confirmation statements, demonstrate good compliance and governance.
• Sole director and shareholder with clear control may allow for agile decision-making.

4. Due Diligence Notes:

• Investigate cash flow cycle and debtor collection to ensure liquidity is not constrained by slow payments.
• Clarify the status and terms of the director’s loan account, including timing and rationale for large repayments, to assess any related party risks or cash flow impacts.
• Review turnover and profitability data (not provided here) to confirm operational sustainability beyond balance sheet strength.
• Confirm no contingent liabilities or pending legal/regulatory issues as none are disclosed in the filleted accounts.
• Assess market position and client concentration given the company’s micro size and single employee.