Company Number: 13953033

Analysis Date: 2025-07-20 14:49 UTC

1. Risk Rating: HIGH

The company’s solvency and liquidity position has deteriorated significantly between the financial years ending 2023 and 2024, indicating elevated financial risk.

2. Key Concerns:

• Sharp Decline in Net Current Assets: Net current assets decreased from £222,944 in 2023 to just £36,055 in 2024. This steep decline raises concerns about the company’s ability to cover short-term liabilities.
• Current Liabilities Increase: Current liabilities ballooned from approximately £83,796 in 2023 to over £506,372 in 2024, a sixfold increase that is disproportionate to the growth in current assets.
• Prepayments and Accrued Income High Relative to Cash: The 2024 accounts show prepayments and accrued income of £265,680, nearly equal to current assets, which may indicate cash flow timing issues or recognition of income that has not yet been realized in cash.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statements are filed on time, indicating compliance with regulatory requirements.
• Stable Leadership: The two directors have been in place since incorporation with no apparent disqualifications or governance issues.
• Growth in Employee Base: The average number of employees increased from 1 to 3 in the latest period, suggesting some operational expansion.

4. Due Diligence Notes:

• Investigate Nature of Increased Current Liabilities: Clarify what caused the large increase in short-term creditors and whether these are trade payables, loans, or accruals.
• Assess Cash Flow and Working Capital Management: Request cash flow statements or bank statements to understand liquidity beyond the balance sheet snapshot.
• Review Prepayments and Accrued Income Composition: Verify whether these are recoverable amounts or potentially overstated assets.
• Confirm Sustainability of Operations: Given the micro-entity size and short operating history, assess business model viability and client concentration.
• Director Background Checks: Although no disqualifications are indicated, confirm no adverse regulatory or legal history.