Company Number: 13976597

Analysis Date: 2025-07-20 17:17 UTC

1. Risk Rating: LOW
   The company shows a stable net asset position and positive net current assets, with no overdue filings or indications of financial distress. The micro-entity status and small scale reduce complexity and associated risks.

2. Key Concerns:

• Limited Financial History: Incorporated in 2022, with only two years of financial data, limiting trend analysis and long-term sustainability assessment.
• Declining Asset Base: Fixed assets and current assets decreased from 2023 to 2024, which may warrant investigation into operational activity or asset disposals.
• Dormant SIC Code: Industry classification as "Dormant Company" (SIC 99999) is inconsistent with having employees and reported assets, suggesting a possible misclassification or operational inactivity that requires clarification.

3. Positive Indicators:

• Positive Net Current Assets and Net Assets: The company maintains net current assets (£1,058) and net assets (£1,220) as of the latest accounts, indicating solvency and working capital adequacy at year-end.
• No Overdue Filings: Both accounts and confirmation statements are up to date, reflecting good compliance and governance practices.
• Single Controlling Shareholder with Clear Oversight: The sole director and 75-100% controlling shareholder is clearly identified, simplifying accountability and decision-making.

4. Due Diligence Notes:

• Confirm the business activity given the dormant SIC code and whether the company is operational or inactive despite financial reporting.
• Review cash flow statements or bank account activity (not available here) to assess liquidity beyond the balance sheet snapshot.
• Assess the reasons behind the reduction in assets and net assets year-on-year and whether this trend is expected to continue.
• Verify the nature and extent of liabilities beyond current liabilities, including any contingent liabilities or off-balance-sheet obligations.
• Understand the business model and contract pipeline to evaluate operational sustainability, especially given the small employee base.