Company Number: 13556934

Analysis Date: 2025-07-20 12:25 UTC

1. Risk Rating: MEDIUM
   The company shows a decline in net assets and net current assets from 2022 to 2023, with current liabilities close to current assets, indicating some pressure on liquidity. However, the company remains solvent with positive net assets and no overdue filings, reflecting moderate financial stability.

2. Key Concerns:

• Declining net assets and net current assets (from £98,609 to £40,043 and £95,708 to £39,162 respectively) may indicate profitability or cash flow challenges.
• Cash reserves have decreased significantly (from £60,403 to £44,218), potentially constraining short-term liquidity.
• High levels of creditors related to VAT (£63,151) and other creditors (£53,834) could signal timing issues in settling obligations.

3. Positive Indicators:

• The company is compliant with filing deadlines for accounts and confirmation statements, showing good regulatory adherence.
• Net assets remain positive, suggesting the company can meet its long-term obligations.
• Directors maintain stable appointments with no disqualifications reported, supporting sound governance.
• The business operates in the temporary employment agency sector, which can offer recurring revenue streams if well managed.

4. Due Diligence Notes:

• Investigate the reasons behind the reduction in net assets and cash balances in 2023 compared to prior years, including profit and loss trends.
• Review the aging and collectability of trade debtors (£127,667) to assess cash flow reliability.
• Examine creditor payment terms and any potential disputes or delays with tax-related liabilities (PAYE, VAT, Corporation Tax).
• Confirm the operational status and business model sustainability given the decrease in employees (average 8 in 2023 vs 13 in 2022).
• Assess the relationship and influence of the major shareholder Technet IT Recruitment Limited and the impact of the director resignation in December 2023.