Company Number: 12486197

Analysis Date: 2025-07-20 12:33 UTC

1. Risk Rating: MEDIUM
   The company shows improving net assets and working capital, indicating some recovery from previous losses. However, significant liabilities due after more than one year and recurring director turnover raise concerns. The small scale and micro-entity reporting limit transparency.

2. Key Concerns:

• High Long-Term Creditors: £438,979 owed beyond one year is substantial relative to net assets of £187,271, suggesting leverage risk.
• Director Instability: The single current director has been repeatedly appointed and resigned within short periods in 2024, which may indicate governance or operational issues.
• Negative Historical Working Capital: The company reported negative net current assets in previous years, which could imply past liquidity constraints.

3. Positive Indicators:

• Improved Financial Position: Net assets increased from a deficit of £55,127 in 2021 to positive £187,271 in 2024, showing financial improvement.
• No Overdue Filings: All statutory accounts and confirmation statements are filed on time, indicating regulatory compliance at present.
• Consistent Employee Base: Maintained an average of 5 employees, suggesting operational continuity.

4. Due Diligence Notes:

• Review the nature and terms of the long-term creditors to assess refinancing risks and covenant obligations.
• Investigate reasons behind frequent director appointments and resignations in 2024 for potential governance or operational instability.
• Obtain management accounts or cash flow statements to verify current liquidity and operational cash generation.
• Assess business model sustainability given the micro-entity scale and sector competition.
• Confirm absence of director disqualifications or regulatory sanctions.