Company Number: 14123713

Analysis Date: 2025-07-29 15:06 UTC

1. Risk Rating: LOW
   This assessment is based on the company's positive net asset position, healthy net current assets, and consistent growth in shareholders' funds over a short operational period since incorporation in 2022. There are no indications of insolvency, overdue filings, or liquidation processes.

2. Key Concerns:

• Reliance on Trade Debtors: Debtors constitute a significant portion of current assets (£427k in 2024), nearly 58% of total current assets. This concentration poses some liquidity risk if collections slow.
• Tax Liability Increase: Corporation tax creditor increased markedly from £19.5k to £89k, requiring cash outflow management to meet obligations.
• Small Scale and Limited History: Incorporated in 2022 with only four employees and small asset base; the company’s ability to withstand economic shocks or scale operations remains unproven.

3. Positive Indicators:

• Strong Growth in Equity: Shareholders’ funds increased from £80,081 in 2023 to £381,147 in 2024, evidencing profitability and capital retention.
• Positive Working Capital: Net current assets improved substantially from £80k to £342k, indicating enhanced liquidity and operational capability.
• Compliance and Governance: No overdue accounts or confirmation statements, and the company has filed accounts with proper accounting standards (FRS 102).
• Operational Stability: The company employs a modest but stable workforce (4 employees) and has tangible fixed assets, supporting ongoing manufacturing activities.

4. Due Diligence Notes:

• Review debtor aging reports and credit control policies to assess the quality and collectability of trade debtors.
• Investigate the nature and timing of the corporation tax liability and ensure appropriate tax planning and cash flow forecasts are in place.
• Understand the customer base and contract terms given the significant debtor balance to evaluate revenue sustainability.
• Confirm any contingent liabilities or off-balance sheet commitments not disclosed in the accounts.
• Validate the board and management team experience given the company's recent incorporation and growth trajectory.