Company Number: 13437161

Analysis Date: 2025-07-20 16:39 UTC

1. Risk Rating: LOW
   The company demonstrates improving financial health with positive net current assets and net assets growing substantially in the latest financial year. There are no overdue filings or indications of regulatory non-compliance. The business operates in a stable sector (general medical practice) with modest but growing resources.

2. Key Concerns:

• Limited scale and capitalization: As a micro-entity with minimal share capital (£100) and small net assets, the company may have limited buffers against unexpected expenses or downturns.
• Concentrated control: Two individuals, including the sole director, hold significant control (combined 75-100%). This could pose governance risks if disagreements or personal financial difficulties arise.
• Modest employee base: Only two employees on average may constrain operational capacity and scalability, potentially impacting sustainability if demand grows or key personnel leave.

3. Positive Indicators:

• Strong improvement in liquidity: Current assets increased from ~£8k to ~£48k, with current liabilities stable, leading to a significant increase in net current assets (£23.5k). This suggests improved cash flow or receivables management.
• Up-to-date statutory compliance: No overdue accounts or confirmation statements; recent filings reflect active and responsible governance.
• Stable and relevant industry: Medical practice activities generally provide steady demand and cash flow, supporting operational stability.

4. Due Diligence Notes:

• Review detailed cash flow statements or bank reconciliations to confirm sources of improved current assets and sustainability of liquidity improvements.
• Assess any related party transactions or director loans given the small size and concentrated ownership.
• Investigate client base and contracts to evaluate revenue stability and diversification.
• Confirm absence of contingent liabilities or off-balance sheet risks that could impact solvency.
• Evaluate employment contracts and succession plans given limited staff count.