Company Number: 13129152

Analysis Date: 2025-07-20 14:27 UTC

1. Risk Rating: MEDIUM
   Justification: The company shows persistent net current liabilities over multiple years indicating potential liquidity constraints. However, it remains a going concern with modest positive net assets and no overdue filings, which mitigates immediate solvency risk.

2. Key Concerns:

• Negative net current assets: The company has had net current liabilities ranging from £-440 to £-710 over the last five years, which might indicate difficulty meeting short-term obligations without additional financing.
• Low cash reserves: Cash balances remain low (£3,658 at 2024 year-end), which limits operational flexibility and raises concerns about cash flow sufficiency.
• Small scale with limited capital: Share capital of only £1 and a single employee (the director) suggests minimal financial buffer and operational scale, potentially increasing vulnerability to market or operational shocks.

3. Positive Indicators:

• Compliance with filings: No overdue accounts or confirmation statements indicate good regulatory compliance and governance.
• Stability in net assets: Despite liquidity pressures, net assets and shareholder funds have shown slight improvement over the years (from £334 in 2020 to £666 in 2024), suggesting limited erosion of capital.
• Clear accounting policies and financial disclosures: The latest accounts are prepared under FRS 102 with detailed notes, which supports transparency and reliability of reported figures.

4. Due Diligence Notes:

• Investigate working capital management: Understand the causes of sustained negative net current assets and whether this is due to timing mismatches, creditor terms, or underlying operational losses.
• Assess cash flow and profitability trends: Review detailed profit and loss data (not included here) and cash flow statements to evaluate operational sustainability and ability to generate positive cash inflows.
• Director background and operational capacity: Given the single director who is also the sole employee, confirm the operational structure and capacity to manage and grow the business.