Company Number: 13429228

Analysis Date: 2025-07-29 14:23 UTC

1. Risk Rating: MEDIUM
   The company demonstrates positive net assets and shareholder funds, indicating solvency, but there is a notable decline in current assets and net current assets in the latest financial year, raising concerns about liquidity. The presence of creditors falling after more than one year in prior years, now absent, suggests repayment or restructuring that should be clarified.

2. Key Concerns:

• Liquidity Deterioration: Current assets dropped from £144,075 (2023) to £80,185 (2024) while current liabilities increased, resulting in net current assets falling dramatically from £144,303 to £23,379. This sharp decline could indicate cash flow pressures.
• Declining Fixed Assets: Fixed assets decreased from £126,038 to £95,008, which may reflect disposals or impairment; the impact on operational capacity should be reviewed.
• Limited Financial Disclosure: As a micro-entity, the company benefits from simplified reporting, limiting detailed insight into profitability, cash flows, and contingent liabilities, which restricts comprehensive risk assessment.

3. Positive Indicators:

• Positive Net Assets and Shareholders’ Funds: Despite the liquidity concerns, net assets remain positive at £114,290, indicating the company’s value exceeds its liabilities.
• No Overdue Filings: Both accounts and confirmation statements are up to date, reflecting good regulatory compliance and governance.
• Active Business with Growing Headcount: Employee numbers increased from 15 to 17, suggesting operational continuity and possible growth.

4. Due Diligence Notes:

• Obtain detailed cash flow statements to understand the cause behind the drop in current assets and net current assets.
• Clarify the status and nature of prior long-term creditors (£150,500 in 2023 and 2022), now absent in 2024, to assess any refinancing or repayment impact.
• Review turnover and profitability figures, which are not disclosed here, to better gauge operational stability and sustainability.
• Investigate the reason for the reduction in fixed assets and its effect on business operations.
• Confirm no director disqualifications or legal actions exist beyond publicly available data.