Company Number: 12449224

Analysis Date: 2025-07-20 12:02 UTC

1. Risk Rating: MEDIUM
   Justification: The company shows positive net assets and net current assets in the latest financial year, indicating solvency. However, the low cash balance relative to current liabilities and reliance on amounts owed to a related company highlight liquidity risks. The company is small, recently incorporated, and exempt from audit, which may limit financial transparency.

2. Key Concerns:

   • Liquidity Concerns: Cash at bank is only £2,493 against current liabilities of £29,836 as of 29 February 2024, indicating potential short-term cash flow stress despite positive net current assets.
   • Related Party Creditors: A significant portion (£26,682) of current liabilities comprises amounts owed to a related company, which may expose the company to refinancing or creditor risk if these related party funds are withdrawn or unavailable.
   • Limited Financial Disclosure: Filing under Total Exemption Full accounts with no audit and absence of a profit and loss statement reduces visibility into operational performance and profitability trends.

3. Positive Indicators:

   • Improved Solvency Position: Net assets have improved substantially from negative £26,710 in 2020 to positive £29,453 in 2024, showing strengthening equity base.
   • Net Current Assets Positive: The company has net current assets of £17,261 in 2024, suggesting working capital adequacy in principle.
   • Consistent Director and Secretary Appointments: Same individuals since incorporation with no indication of disqualification or governance issues.

4. Due Diligence Notes:

   • Investigate the nature and terms of the related party balances classified as current liabilities, including repayment schedules and dependency risks.
   • Review underlying cash flow statements or bank statements to understand actual liquidity and cash conversion cycles.
   • Obtain management accounts or additional disclosures to assess profitability, revenue trends, and operational sustainability.
   • Confirm no outstanding filing or compliance issues beyond what is publicly visible.
   • Evaluate the impact of no audit exemption on financial assurance and whether an audit or external review is planned.