Company Number: 13022820

Analysis Date: 2025-07-20 14:31 UTC

1. Risk Rating: MEDIUM
   The company shows recent improvement in net current assets from a prior negative position, indicating some recovery in short-term solvency. However, the small absolute values of assets and equity, combined with volatility in net current assets, suggest moderate financial fragility typical of a micro-entity startup. This warrants cautious monitoring.

2. Key Concerns:

• Volatile Working Capital: The net current assets swung from a substantial deficit of £3,949 in 2023 to a positive £1,389 in 2024, highlighting potential instability in liquidity management.
• Minimal Share Capital and Reserves: With share capital at £1 and net assets under £1,400, the company has a very limited financial buffer to absorb losses or fund growth.
• Single-Employee Operation: The company operates with just one employee, which may constrain operational capacity and scalability, raising questions about sustainability.

3. Positive Indicators:

• Timely Filing and Compliance: The company is current on both accounts and confirmation statement filings with no overdue reports, indicating good regulatory compliance.
• Improved Liquidity Position: The reversal from negative to positive net current assets suggests management has taken steps to stabilize short-term finances.
• Continuity of Control: A consistent controlling interest by the same individuals provides stability in governance and decision-making.

4. Due Diligence Notes:

• Examine Cash Flow Details: Investigate cash flow statements or bank statements to confirm the sources of improved liquidity and assess ongoing cash generation capability.
• Review Business Model and Revenue Streams: Given the micro-size and limited staff, understanding how the company generates revenue and sustains operations is critical.
• Assess Related Party Transactions: Given the controlling shareholders' majority voting and shareholding, verify if there are any related party transactions that could impact financial health or governance.