Company Number: 14226382

Analysis Date: 2025-07-20 12:16 UTC

1. Risk Rating: HIGH
   The company exhibits a significant deterioration in financial position over the latest reporting period, with net assets falling sharply from £28,008 in 2023 to £3,512 in 2024. This sudden drop in current assets and net assets raises solvency concerns, despite no current liabilities reported for 2024.

2. Key Concerns:

• Drastic reduction in current assets: Current assets plummeted from £33,711 in 2023 to £2,809 in 2024, indicating potential liquidity issues or asset disposals.
• Significant decline in net assets: Net assets decreased by over 87%, which could signal operational losses or capital erosion threatening solvency.
• Limited operational scale: The company employs only one person and is classified as a micro-entity, suggesting limited business diversification and capacity to absorb financial shocks.

3. Positive Indicators:

• No current liabilities reported for 2024: Absence of short-term creditors may indicate no immediate external debts or payables pressure.
• Compliance with filing requirements: Both accounts and confirmation statements are filed timely with no overdue submissions, reflecting good regulatory compliance.
• Clear ownership and governance: Director and Persons with Significant Control are properly recorded and appear stable, reducing governance risk.

4. Due Diligence Notes:

• Investigate the cause of the large decrease in current assets and net assets between 2023 and 2024, including whether this reflects cash burn, asset disposals, or accounting adjustments.
• Review cash flow statements or bank statements (if available) to assess liquidity and working capital management.
• Confirm the nature and continuity of consulting contracts or revenue streams, given the micro-entity status and limited staffing.
• Assess any contingent liabilities or off-balance-sheet exposures not reflected in the micro-entity accounts.
• Verify related party transactions or intra-group balances that may impact financial stability.