Company Number: 13306995

Analysis Date: 2025-07-29 14:13 UTC

1. Risk Rating: MEDIUM
   The company has shown a significant turnaround in net assets and liquidity from a negative position in 2024 to a positive net asset base and improved working capital in 2025. However, prior years’ negative equity and reliance on director loans, alongside zero employees, suggest operational fragility and potential risks.

2. Key Concerns:

• Previous Negative Net Assets and Shareholders’ Funds: The company reported net liabilities of £10,681 as of 31 March 2024, indicating prior solvency challenges. Although reversed in 2025, this historical weakness may reflect underlying operational or financial instability.
• Zero Employees: The absence of employees raises questions about the operational model and sustainability of the business. This may indicate dependence on the director alone or on subcontractors, which could limit scalability and operational resilience.
• Director Loans Formerly Present: As of 2024, there were significant loans from directors (£5,967) recorded as long-term liabilities. Their removal in 2025 could suggest repayment or conversion, but the previous reliance on related-party funding is a risk factor.

3. Positive Indicators:

• Improved Liquidity and Net Current Assets: Current assets increased substantially to £33,194 with cash rising to £16,505, resulting in net current assets of £20,725 as at 31 March 2025, a positive sign for short-term solvency.
• Timely Filing and Compliance: The company is active with no overdue accounts or confirmation statements, indicating good regulatory compliance.
• Consistent Director Presence: The same director has been in position since incorporation, which may provide continuity in management.

4. Due Diligence Notes:

• Investigate the nature and sustainability of the business model given zero employees and reliance on director management.
• Confirm the status and terms of director loans previously outstanding and assess any related-party risk.
• Review cash flow statements and profit and loss account (not filed) to understand revenue sources, profitability, and cash generation.
• Assess the reasons behind the rapid improvement in net assets and working capital between 2024 and 2025 to ensure it is based on sustainable operations rather than one-off transactions.
• Evaluate customer concentration and debtor quality, given the increase in trade debtors.