Company Number: 12521300

Analysis Date: 2025-07-29 18:38 UTC

1. Risk Rating: MEDIUM

The company demonstrates minimal net asset value and marginal positive working capital, indicating fragile financial stability. However, it remains active with up-to-date filings and no indication of insolvency or administration.

2. Key Concerns:

• Low Net Assets: The net assets reported are £178 as of March 2024, which is very low and marginally positive following prior years of negative net assets. This raises solvency concerns should any unexpected liabilities arise.
• Thin Liquidity Cushion: Cash balances are minimal (£2,866) and only slightly exceed current liabilities (£2,688). This narrow margin could create liquidity stress if receivables or cash inflows are delayed.
• Dependence on Director Advances: The company owes the sole director £837 at year-end, reflecting reliance on director funding to support operations, which may not be sustainable long term.

3. Positive Indicators:

• Current with Filings: Both accounts and confirmation statements are filed on time, indicating compliance with regulatory requirements.
• Consistent Trading Activity: The company is active since incorporation in 2020 with ongoing operations in environmental consulting, suggesting operational continuity.
• Single Employee Model: Employing only one person (the director) limits fixed overhead costs, which can aid survival in low revenue periods.

4. Due Diligence Notes:

• Examine Revenue and Profit Trends: The absence of a profit and loss account limits assessment of operational profitability; reviewing internal management accounts or tax filings would be prudent.
• Director Funding Details: Investigate the nature of the director’s loans and repayments, including any formal agreements, to assess financial risk and potential contingent liabilities.
• Cash Flow Analysis: Obtain detailed cash flow statements to evaluate operating cash generation and timing of creditor payments relative to cash reserves.