Company Number: 12807152

Analysis Date: 2025-07-20 16:09 UTC

1. Risk Rating: MEDIUM
   The company shows a significant improvement in net current assets and net assets in the latest financial year, supported by a substantial increase in cash reserves. However, current liabilities have also increased markedly, particularly taxation and social security creditors, which raises concerns about liquidity management and tax compliance risk.

2. Key Concerns:

• Rapid increase in current liabilities: Current liabilities rose from £8,416 in 2023 to £37,417 in 2024, mainly due to taxation and social security creditors (£33,626), which could indicate deferred tax payments or cash flow timing issues.
• No employees reported: The absence of employees suggests potential operational fragility or reliance on subcontractors, which may affect business sustainability and scalability.
• Modest asset base: Tangible fixed assets remain low (£2,414), indicating limited capital investment, which could impact long-term operational capacity in a capital-intensive sector like petroleum support activities.

3. Positive Indicators:

• Strong cash position: Cash increased significantly to £122,923 in 2024 from £13,512 in 2023, improving liquidity and the ability to meet short-term obligations.
• Improved net assets and shareholder funds: Net assets grew from £6,452 to £87,390, reflecting retained earnings accumulation and potentially profitable operations.
• Timely filing and compliance: The company is current with both accounts and confirmation statement filings, indicating good regulatory compliance.

4. Due Diligence Notes:

• Investigate the nature and timing of the large taxation and social security creditor balance to assess if this is a temporary timing difference or a risk of non-payment.
• Review contracts and operational model given the absence of employees to understand sustainability and reliance on third parties.
• Clarify revenue trends and profitability since the profit and loss account was not included, to confirm the source of increased reserves.
• Examine cash flow statements if available for insights into operational cash generation versus financing activities.
• Confirm directors’ backgrounds and any potential conflicts of interest, given the dual directorship and significant control held by two individuals.