Company Number: 12928002

Analysis Date: 2025-07-20 14:29 UTC

1. Risk Rating: LOW
   The company demonstrates a stable financial position with positive net assets and net current assets increasing year-on-year, no overdue filings, and no indication of liquidation or insolvency. The micro-entity status limits available financial detail but does not raise immediate solvency or liquidity concerns.

2. Key Concerns:

• Limited disclosure: As a micro-entity, the company files simplified accounts lacking a profit and loss statement, restricting insight into profitability and cash flow trends.
• Concentrated control: A single PSC holds significant ownership and voting rights (25-50%), which could impact governance and decision-making transparency.
• Small scale: The company operates with only 2 employees and minimal fixed assets, which may limit operational capacity and resilience against market disruptions.

3. Positive Indicators:

• Strong liquidity position: Current assets (£258,650) substantially exceed current liabilities (£163,227), yielding a healthy net current asset balance (£95,423) and implying good short-term liquidity.
• Consistent growth in net assets: Shareholders’ funds increased from £79,572 in 2023 to £112,003 in 2024, indicating retained earnings or capital injections enhancing solvency.
• Compliance: No overdue accounts or confirmation statements, indicating good regulatory compliance and governance practices to date.

4. Due Diligence Notes:

• Review detailed financial performance if available, particularly profit and loss data, to assess operating profitability and cash flow sufficiency.
• Confirm the nature of current liabilities to determine any concentration of short-term debt or creditor risk.
• Assess the business model and revenue sources given the small scale and limited asset base, to verify operational sustainability.
• Evaluate the governance structure considering the PSC’s influence and potential related-party transactions.
• Verify the accuracy and completeness of director information and any potential director conduct risks.