Company Number: 13549955

Analysis Date: 2025-07-20 13:29 UTC

1. Risk Rating: MEDIUM

Justification: The company is a micro-entity with modest net assets (£630 as of 31 March 2024) and shows a significant decline in net assets from prior years, which signals potential solvency strain. However, it remains active with no overdue filings, and its liabilities are close to current assets, indicating tight liquidity but not immediate distress.

2. Key Concerns:

• Declining Net Assets: Shareholders' funds dropped sharply from £8,358 in 2023 to £630 in 2024, indicating erosion of equity and potential operational losses.
• Tight Working Capital: Current liabilities (£34,547) nearly match current assets (£37,625), leaving very limited buffer for short-term obligations.
• Single Employee Dependence: The company employs only one person (the director), which may pose operational risks if the business scales or if key personnel are unavailable.

3. Positive Indicators:

• Compliance: No overdue accounts or confirmation statements, indicating good regulatory compliance.
• Established Business Activity: The company operates in a specialist medical practice (SIC 86220), a sector with stable demand.
• Control and Governance: Clear ownership and management structure with two main persons with significant control, suggesting defined governance.

4. Due Diligence Notes:

• Investigate the cause of the significant decrease in net assets—whether due to operating losses, exceptional charges, or accounting adjustments.
• Review cash flow statements or bank statements to assess liquidity beyond balance sheet snapshots.
• Confirm the sustainability of the business model given its size and single employee structure.
• Verify any contingent liabilities or off-balance sheet risks not captured in micro-entity filings.
• Consider director’s track record and experience given the company’s specialist nature.