Company Number: 13989813

Analysis Date: 2025-07-20 12:21 UTC

1. Risk Rating: LOW
   The company presents a solid financial position with positive net assets and net current assets, no overdue filings, and a clear ownership and management structure. There are no indications of insolvency or liquidity distress from the available data.

2. Key Concerns:

• Deferred tax liability has increased to £12,590, which could impact future cash flows if not managed properly.
• Directors’ current accounts creditor balance (£18,705) is relatively large, indicating possible reliance on director funding that may need monitoring.
• The company is small with only 2 employees, which may limit operational capacity and scalability, potentially impacting long-term sustainability.

3. Positive Indicators:

• Net assets have increased from £31,133 in 2022 to £80,778 in 2025, showing consistent growth in equity and business value.
• Positive net current assets (~£6,700) indicate the company can meet short-term liabilities comfortably.
• Cash reserves remain strong (£46,445 in 2025), supporting liquidity and operational needs.
• No overdue accounts or confirmation statements; the company is compliant with regulatory filing deadlines.
• The sole director and 100% owner is consistent and transparent, reducing governance complexity.

4. Due Diligence Notes:

• Review the nature and timing of the deferred tax liability to assess any potential future cash flow impact.
• Investigate the composition and terms of the directors’ current accounts balance, including repayment plans or potential risks.
• Confirm the company’s operational model and client base to evaluate sustainability given the small workforce.
• Check for any off-balance sheet liabilities or contingent risks not disclosed in the accounts.
• Verify the accuracy and completeness of the financial information, noting the accounts are unaudited.