Company Number: 13604891

Analysis Date: 2025-07-20 12:33 UTC

1. Risk Rating: MEDIUM
   The company shows modest net assets and equity but declining current assets and a negative net current asset position in the latest year, indicating potential short-term liquidity pressure. The very small scale of operations and limited asset base elevate risk somewhat.

2. Key Concerns:

• Negative net current assets (£54 deficit) at 31 Dec 2023, a liquidity warning despite positive net assets overall.
• Declining fixed assets and current assets from 2022 to 2023, suggesting limited investment or possible asset disposals without clear offsetting growth.
• Limited operational scale with only 2 employees and micro-entity status, which may constrain business resilience and growth capacity.

3. Positive Indicators:

• Company is active and filings (accounts and confirmation statement) are up to date with no overdue submissions, indicating regulatory compliance.
• Positive net assets (£1,696) and shareholders funds, reflecting some retained capital buffer.
• Control by a director with significant shareholding and voting rights may support aligned management and ownership interests.

4. Due Diligence Notes:

• Investigate cash flow statements and detailed working capital management to understand the cause of negative net current assets and assess liquidity risk.
• Clarify revenue trends, profitability, and customer base to gauge operational sustainability in a niche sector (sports activities and manufacture of sports goods).
• Review director background and any related party transactions given director’s dual role and significant control to assess governance risks.