Company Number: 13589368

Analysis Date: 2025-07-29 14:03 UTC

1. Risk Rating: MEDIUM
   The company shows a significant increase in current assets and net current assets in the latest year, improving liquidity markedly. However, the net assets and shareholders’ funds remain at zero for 2024 due to high provisions and accruals, which offset the asset base, suggesting potential balance sheet concerns. The company is a micro-entity with limited financial disclosures and no audit, which limits transparency.

2. Key Concerns:

• Zero Net Assets and Shareholders’ Funds in 2024: Despite a strong working capital position, large provisions (£7,500) and accruals/deferred income (£88,896) sweep net assets down to zero, raising questions about underlying liabilities or deferred income recognition practices.
• Recent Director and PSC Changes: Appointment of a new director and PSC in mid-2025 indicates ownership and management changes; the impact on governance and strategic direction requires review.
• Limited Financial History and Micro-Entity Status: The company’s micro-entity filing status means accounts are unaudited and simplified, restricting visibility into financial health, profitability, and cash flow dynamics.

3. Positive Indicators:

• Substantial Increase in Current Assets and Working Capital: Current assets grew from £8,667 in 2023 to £121,003 in 2024, with net current assets rising from £117 to £89,382, indicating improved liquidity and operational cash resources.
• No Overdue Filings and Active Status: The company is up to date with statutory filings and remains active, suggesting compliance with regulatory requirements.
• Increasing Employee Base: The average number of employees increased from 1 to 3 over the year, possibly reflecting business growth or operational scaling.

4. Due Diligence Notes:

• Investigate the nature and justification for the significant provisions and accruals (£96,395 combined) that neutralize net asset value, including any contingent liabilities or deferred revenue contracts.
• Review cash flow statements or management accounts if available, to confirm liquidity beyond balance sheet figures.
• Clarify the rationale and impact of recent director and PSC changes on governance, control, and business strategy.
• Assess revenue trends, profitability, and business model sustainability, given limited disclosed financial details.
• Confirm that the registered office address inconsistencies (company overview vs accounts document) do not indicate administrative issues.