Company Number: 13643930

Analysis Date: 2025-07-20 14:21 UTC

1. Risk Rating: MEDIUM

The company shows improving financial metrics with positive net assets and net current assets in the latest year; however, it operates with relatively high long-term liabilities and limited liquidity buffer. Being a micro-entity with minimal staff and unaudited accounts also limits transparency, warranting a cautious medium risk rating.

2. Key Concerns:

• Liquidity Constraints: While net current assets have improved to £28,901 as of March 2024 from negative in prior years, current liabilities remain significant (£182,647), which could pressure short-term cash flows.
• Long-term Creditors: The company has substantial amounts falling due after more than one year (£206,311), which could pose solvency risks if future earnings or asset realizations are insufficient.
• Limited Operating Scale and Transparency: As a micro-entity with only one employee and unaudited accounts, financial information is limited, restricting the ability to fully assess operational sustainability or detect potential governance issues.

3. Positive Indicators:

• Improving Net Assets and Working Capital: Net assets increased from £134,192 in 2023 to £229,800 in 2024, and net current assets turned positive, indicating strengthening financial health.
• No Overdue Filings: Both accounts and confirmation statements are filed on time, reflecting regulatory compliance and good governance.
• Sole Director with Relevant Professional Background: The single director is a chartered accountant, which may suggest competent financial oversight.

4. Due Diligence Notes:

• Examine Nature and Terms of Long-term Creditors: Understand maturity profiles, interest obligations, and covenants to assess solvency risk.
• Review Cash Flow Statements and Profitability Trends: Although not provided here, these would clarify liquidity and operational sustainability.
• Verify Director Related Transactions: Director advances were repaid in the latest period; confirm no outstanding related party risks.
• Confirm Business Model and Revenue Streams: As a financial services holding company with limited staff, clarify sources of income and reliance on external funding.