Company Number: 13644698

Analysis Date: 2025-07-20 14:28 UTC

1. Risk Rating: LOW
   The company demonstrates a stable and improving financial position with positive net assets and net current assets over the last three years. There are no overdue filings or signs of financial distress, and the business appears compliant with statutory requirements.

2. Key Concerns:

• Limited financial detail due to micro-entity reporting regime restricts insight into profitability and detailed cash flow.
• Reliance on a single director and a small shareholder base could pose governance concentration risk.
• Fixed assets have decreased over the last two years, which may indicate underinvestment in long-term operational capacity.

3. Positive Indicators:

• Consistently positive net current assets and net assets, showing liquidity and solvency.
• Increased net assets from £16,321 in 2021 to £47,702 in 2024, reflecting growth and retained earnings accumulation.
• Average number of employees rose from 14 to 24, suggesting business expansion and operational scaling.
• All statutory filings are up to date with no overdue accounts or confirmation statements, indicating good compliance and governance.

4. Due Diligence Notes:

• Review detailed profit and loss statements, if available, to assess profitability trends and cash generation capacity.
• Clarify the nature of current liabilities to understand short-term obligations and working capital management.
• Investigate the reason for the decline in fixed assets and whether this impacts operational capacity or future growth.
• Assess director's background and any related party transactions given the concentrated ownership and control structure.
• Confirm whether the increase in employees corresponds with revenue growth or increased operational expenses.