Company Number: 13969906

Analysis Date: 2025-07-29 19:28 UTC

1. Risk Rating: LOW
   The company shows a strong improvement in financial position over the last reported year, with significant positive net current assets and net assets. There are no overdue filings or signs of regulatory non-compliance.

2. Key Concerns:

• Initial losses and negative equity in the first two years (2022 and 2023) indicate early-stage financial strain before a strong recovery in 2024.
• Reliance on directors’ support for going concern assumption as stated in accounting policies; this may present a risk if director support wanes.
• The company operates in IT consultancy, which can be competitive and dependent on client retention and contract renewals; limited historical performance data available due to recent incorporation.

3. Positive Indicators:

• Significant turnaround in financial health in the year ended March 2024, with net assets rising to approximately £770k from a negative £14.7k.
• Strong liquidity position with cash balances over £759k and positive net current assets of £763k at latest year end.
• Compliance with filing deadlines for both accounts and confirmation statements, indicating good governance and regulatory compliance.
• Growing employee base (from 2 to 6 employees), suggesting operational scaling and business development.
• Active website presence aligned with stated SIC code activity, supporting transparency and marketing efforts.

4. Due Diligence Notes:

• Verify the sustainability of the cash position and the source of cash inflows in the latest year to confirm operational cash generation or capital injections.
• Review directors’ current accounts balances and any related party transactions to assess financial support and potential liabilities.
• Examine client contracts and revenue recognition policies, given turnover is recognized as monthly contracted fees.
• Assess the competitive position and business model viability in the IT consultancy sector, including client concentration risk.
• Confirm no director disqualifications or adverse conduct records exist for the current directors.