Company Number: NI678029

Analysis Date: 2025-07-29 18:02 UTC

1. Risk Rating: MEDIUM
   The company shows a modest positive net current asset position for 2023, but with minimal cash on hand and a negligible shareholder equity base. The reliance on debtors as current assets and recurring changes in corporate control raise some concerns.

2. Key Concerns:

• Liquidity Risk: Cash balances are extremely low (£1), indicating potential difficulties meeting immediate obligations despite positive net current assets mainly driven by debtors, which may not be readily collectible.
• Minimal Equity and Capitalization: Share capital and shareholders’ funds remain at £1, suggesting very limited capital buffer to absorb losses or support growth.
• Frequent Changes in Control and Directors: Multiple corporate directors and director appointments/resignations in a short time frame could indicate instability in governance or ownership structure.

3. Positive Indicators:

• Timely Filing and Compliance: No overdue filings for accounts or confirmation statements reflect good regulatory compliance and governance discipline.
• Improved Working Capital Position: Net current assets improved from negative in 2022 to a positive £4,425 in 2023, indicating some operational improvement.
• Exemption from Audit: Qualification as a small company under FRS 102 and exemption from audit reduces administrative burden and cost.

4. Due Diligence Notes:

• Verify the quality and collectability of the £87,619 debtor balance, as it represents the majority of current assets.
• Investigate the cash flow cycle and working capital management to understand how liquidity is maintained with minimal cash.
• Review the rationale and implications behind frequent changes of corporate directors and PSC entities to assess governance stability and control risks.
• Confirm whether the defined benefit pension liability noted in 2023 has any material impact on future cash flows or solvency.