Company Number: 12548918

Analysis Date: 2025-07-19 12:23 UTC

1. Risk Rating: LOW to MEDIUM
   The company demonstrates a positive net asset position, consistent growth in net assets and current assets, and no overdue filings or indication of insolvency. However, relatively low share capital and modest scale of operations, combined with director loans, suggest some vulnerability typical of a small, owner-managed business.

2. Key Concerns:

• Director Loans Increasing: The directors’ loan accounts show significant negative balances (£24,053 and £3,516), indicating the company owes money to directors. This could reflect cash flow strain or reliance on director funding which may pose risk if not managed prudently.
• Modest Equity Base: Share capital is minimal (£2), and retained earnings, while positive, are relatively low (£19,305), limiting the company’s buffer against financial shocks.
• Concentration of Control and Management: Both directors are also the only key officers, and the small number of employees (average 4) may impact operational resilience and governance robustness.

3. Positive Indicators:

• Consistent Growth in Net Assets: Net assets increased steadily from £3,738 in 2020 to £19,307 in 2024, showing retained profitability and strengthening financial position.
• Healthy Liquidity Position: Current assets exceed current liabilities by approximately £19,307, with cash balances stable around £30k, suggesting the company can meet short-term obligations.
• Compliance and Timely Filing: No overdue accounts or confirmation statements; filings are up to date indicating good regulatory compliance.

4. Due Diligence Notes:

• Investigate Director Loan Terms: Review agreements and repayment plans for director loans to assess risk exposure and impact on cash flow.
• Cash Flow Analysis: Obtain cash flow statements to verify operational cash generation and to confirm liquidity beyond balance sheet snapshots.
• Review Customer Concentration and Debtor Quality: Debtors increased notably in 2024; assess credit risk and collectability to ensure receivables are sound.
• Assess Operational Dependencies: Given small staff size and concentrated management, evaluate contingency plans for key person risk and business continuity.