Company Number: 12784187

Analysis Date: 2025-07-29 14:05 UTC

1. Risk Rating: MEDIUM
   The company shows improving net assets and working capital but has no cash balance and high debtors, which may indicate potential liquidity risk. The absence of audit and limited employee base add operational risk considerations.

2. Key Concerns:

• Liquidity Risk: Zero cash at year-end (2023) despite significant current assets largely tied in debtors (£241,640), which may delay meeting short-term obligations (current liabilities £176,414).
• Limited Operational Scale: Only one employee reported and no turnover data provided, suggesting small operational scale with possible dependency on key personnel or limited revenue streams.
• Unpaid Share Capital: Notes indicate shares remain unpaid, which may impact financial robustness and shareholder commitment.

3. Positive Indicators:

• Improving Financial Position: Net assets increased from £25,115 (2022) to £87,010 (2023), and net current assets have grown substantially, reflecting improved short-term financial health.
• Compliance: Accounts and confirmation statements are filed on time with no overdue status, indicating good regulatory compliance.
• Controlled Ownership: Ownership structure shows parent company and a few individuals with clear shareholding and voting rights, which may facilitate decision-making and governance.

4. Due Diligence Notes:

• Investigate the nature and collectability of the large debtor balance, especially the high "other debtors" figure (£228,151) to assess cash flow reliability.
• Review trading activities and revenue generation given the lack of turnover disclosure and only one employee, to understand business sustainability.
• Clarify the status and implications of unpaid share capital and any potential impact on capital adequacy or shareholder support.
• Confirm no director disqualifications or governance concerns beyond basic appointments.
• Assess whether any contingent liabilities or off-balance sheet obligations exist, particularly given the small scale of fixed assets.