Company Number: 14355760

Analysis Date: 2025-07-20 15:17 UTC

1. Risk Rating: LOW

   Justification: The company shows strong net current assets and positive net assets, indicating good solvency and liquidity for its size. There are no overdue filings or regulatory concerns. The business is very small (micro-entity), with minimal employees and straightforward ownership, reducing complexity and operational risk.

2. Key Concerns:

   • Single Director and Employee: The company is operated solely by Mr. Dominic Collard, which could create dependency risk and operational continuity concerns.
   • Limited Financial History: Incorporated recently (2022) with only a couple of years of financial data, limiting trend analysis and long-term stability assessment.
   • Accruals and Deferred Income Increase: The accruals/deferred income rose significantly from £483 in 2023 to £15,817 in 2024, warranting investigation to understand the nature and timing of liabilities or revenue recognition.

3. Positive Indicators:

   • Strong Working Capital: Net current assets increased from £117,798 in 2023 to £142,534 in 2024, showing healthy liquidity.
   • Positive Equity: Shareholders’ funds stand at £126,718, reflecting retained earnings or capital injection and no apparent insolvency issues.
   • Timely Filing: Both accounts and confirmation statement are up to date with no overdue filings, demonstrating regulatory compliance.
   • Clear Ownership and Control: Ownership and voting rights are fully held by the director, ensuring clear decision-making authority.

4. Due Diligence Notes:

   • Review the nature of the accruals and deferred income increase in 2024 to assess any revenue recognition or liability concerns.
   • Confirm the source of current assets (e.g., cash, receivables) to verify liquidity quality.
   • Understand business model and client base to evaluate sustainability given the single employee/director setup.
   • Verify absence of any contingent liabilities or off-balance sheet risks not disclosed in micro-entity accounts.
   • Ascertain director’s experience and other commitments to gauge operational risk.