Company Number: 13526939

Analysis Date: 2025-07-20 18:47 UTC

1. Risk Rating: MEDIUM
   The company shows some improvement in net current assets and total net assets in the latest financial year, but there remain concerns regarding long-term liabilities and overall equity position.

2. Key Concerns:

• Long-term liabilities: The company has significant creditors falling due after more than one year (£13,198 in 2024), which is substantial relative to net assets (£949), indicating potential solvency pressure if these debts need to be repaid or refinanced soon.
• Equity fluctuations: The net assets have swung from a negative £19,878 in 2023 to a positive £949 in 2024. This volatility may reflect unusual transactions or restructuring that require further scrutiny to understand sustainability.
• Limited operational scale: With only one employee and micro-entity account category, the business scale is very small, which may limit operational stability and resilience to market fluctuations.

3. Positive Indicators:

• Improved liquidity position: Net current assets improved markedly from negative £1,685 in 2023 to positive £9,302 in 2024, suggesting better short-term liquidity management.
• Timely compliance: The company’s accounts and confirmation statement filings are current with no overdue notices, indicating good regulatory compliance.
• Single controlling shareholder/director: The director also owns 75-100% of voting rights and shares, simplifying governance and decision-making processes.

4. Due Diligence Notes:

• Investigate the nature and maturity of the long-term creditors to assess repayment risk and refinancing plans.
• Review the cause of the significant asset and equity fluctuations between 2023 and 2024, including any unusual transactions or capital injections.
• Clarify the business’s revenue streams and profitability trends to evaluate operational sustainability given the micro scale and single employee structure.
• Confirm any contingent liabilities or off-balance sheet commitments that may impact financial stability.
• Assess the background and track record of the sole director for any potential governance or operational risks.