Company Number: 12480996

Analysis Date: 2025-07-20 16:15 UTC

1. Risk Rating: LOW to MEDIUM
   The company demonstrates positive net assets and working capital across the latest financial years, indicating a generally solvent position. However, there is a noticeable decline in net assets and current assets between 2023 and 2024, suggesting some deterioration in liquidity. The micro-entity status limits available financial detail, preventing a full liquidity and operational performance assessment.

2. Key Concerns:

• Declining net assets: Shareholders’ funds decreased from £33,744 in 2023 to £22,058 in 2024, which may indicate reduced profitability or asset erosion.
• Reduction in current assets by nearly 46% year-on-year (from £109,101 in 2023 to £58,912 in 2024) while current liabilities have also decreased but remain significant. This could point to tighter liquidity and potential cash flow pressure.
• The company has no audit and has filed under micro-entity provisions, limiting transparency and detail on profitability and cash flow, which increases uncertainty regarding operational stability.

3. Positive Indicators:

• Positive net current assets (£28,435 in 2024) and positive net assets (£22,058) indicate the company remains solvent and can meet short-term obligations.
• The company has a single director who is also the sole person with significant control, simplifying governance and decision-making processes.
• No overdue filings or compliance issues noted; last accounts and confirmation statements are filed on time, suggesting regulatory compliance is maintained.
• The company operates in environmental consulting (SIC 74901), a sector with growing demand, which could support future operational stability.

4. Due Diligence Notes:

• Investigate reasons behind the significant decline in current assets and net assets between 2023 and 2024, including reviewing cash flow trends and any extraordinary expenses or losses.
• Assess operational performance metrics such as revenue, profitability, and client retention, which are not disclosed in the micro-entity accounts.
• Review any contingent liabilities or off-balance-sheet obligations that might affect solvency.
• Confirm the director’s background and capacity to manage the company, including any potential conflicts of interest given sole control.
• Obtain management commentary or strategic outlook to understand future plans and risks, especially in light of reduced financial reserves.