Company Number: 13809170

Analysis Date: 2025-07-29 19:25 UTC

1. Risk Rating: MEDIUM
   Justification: The company is a micro-entity with limited financial scale and relatively small net assets (£883 as of 2024 year-end). While it shows positive net current assets in the latest year, the absolute values are low and have fluctuated notably in prior years, indicating some instability. The company is active with no overdue filings, but its small size and fluctuating working capital pose moderate solvency and liquidity risks.

2. Key Concerns:

• Low Absolute Net Assets and Working Capital: Net assets and net current assets are positive in 2024 but minimal (£883 and £102 respectively), suggesting limited financial buffer to meet unexpected liabilities or downturns.
• Volatile Current Assets and Liabilities: The company’s current liabilities and assets have fluctuated significantly over the last three years, with some years showing negative working capital (e.g., 2023: -£634), indicating possible liquidity pressure.
• Concentration of Control: 100% ownership and control by a single director/shareholder increases governance risk and potential operational dependency on one individual.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statements are filed on time, indicating compliance with regulatory requirements.
• Stable Employee Base: The company maintains a small but consistent workforce (average 2 employees), which may reflect operational stability at its current scale.
• Positive Net Assets in Latest Year: After some volatility, the company returned to positive net assets and working capital in 2024, suggesting some recovery or improved financial management.

4. Due Diligence Notes:

• Review detailed cash flow statements and management accounts to assess the company’s ongoing liquidity position and cash conversion cycle.
• Investigate the reasons behind the fluctuations in current liabilities and assets over the past years to identify any underlying operational or credit issues.
• Confirm the operational viability of the business model given the small scale and limited asset base, including client contracts and revenue streams.
• Assess the governance framework and potential risks related to single-person control, including succession planning or contingency measures.