Company Number: 13738821

Analysis Date: 2025-07-29 12:58 UTC

1. Risk Rating: MEDIUM
   This rating reflects the company's very limited current assets relative to its liabilities, modest net assets, and minimal operating scale, alongside no evident liquidity cushions. However, absence of overdue filings and stable fixed assets mitigate the risk somewhat.

2. Key Concerns:

• Liquidity Risk: Current assets (£1,520) barely cover short-term creditors (£1,306), indicating tight working capital and potential cash flow difficulties.
• High Long-Term Liabilities: Significant creditors due after more than one year (£98,639) compared to net assets (£4,669) suggest leverage and solvency risks if cash flows do not improve.
• Operational Scale and Sustainability: No employees and minimal current assets suggest limited operational activity and potential reliance on external financing, risking sustainability if income streams are insufficient.

3. Positive Indicators:

• No Filing or Compliance Issues: All accounts and confirmation statements are filed on time, indicating good regulatory compliance.
• Stable Fixed Assets: Fixed assets remain steady at £103,000 over three years, indicating asset stability which could support borrowing or sale if needed.
• Sole Director and Shareholder Control: Clear ownership and control by a single director and PSC (75-100%) simplifies governance and decision-making.

4. Due Diligence Notes:

• Investigate the nature and terms of long-term liabilities (£98,639) to understand repayment obligations and associated risks.
• Clarify the company's income sources and cash flow generation given the micro-entity status and low current assets.
• Verify whether the fixed assets are income-producing real estate as SIC codes suggest and their market valuation and liquidity.
• Assess director’s plans for operational growth or funding to safeguard against liquidity stress.