Company Number: 13349398

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

1. Risk Rating: MEDIUM
   The company is active and has recently filed its accounts and confirmation statement on time, which supports regulatory compliance. However, limited financial data (only one year) and modest net assets combined with trade creditors nearing current assets level suggest some liquidity and solvency caution.

2. Key Concerns:

• Liquidity Pressure: Trade creditors (£29,970) are a significant portion of current liabilities (£39,803) compared to cash (£17,598) and debtors (£42,151). A delay in debtor collection could strain cash flow.
• Limited Financial History: Only one year of financial data is available since incorporation in 2021, which restricts trend analysis for stability and profitability.
• Director Turnover: Several director resignations within a short period (2023-01-31 and 2024-02-01) may indicate governance or operational challenges.

3. Positive Indicators:

• Regulatory Compliance: No overdue filings; accounts and confirmation statements are up to date.
• Positive Net Assets: Net assets of £21,155 show a positive equity position, indicating the company is not technically insolvent at the balance sheet date.
• Clear Business Focus: Operates in a niche social work sector (SIC 88990) with an active website and community engagement which may provide stable demand.

4. Due Diligence Notes:

• Verify the age and collectability of trade debtors to assess liquidity risk more accurately.
• Investigate reasons behind director resignations and their impact on business continuity and governance.
• Review subsequent financial performance beyond the first accounting period to assess operational sustainability and cash flow trends.
• Confirm the nature and timing of current liabilities, especially other creditors of £5,000, to identify any impending payment obligations.
• Examine whether the company has any contingent liabilities or off-balance sheet commitments not reflected in the accounts.