Company Number: 13247148

Analysis Date: 2025-07-29 14:56 UTC

1. Risk Rating: MEDIUM
   The company shows a modest net asset position but current liabilities slightly exceed current assets, generating a marginal working capital buffer. While there are no overdue filings or liquidation concerns, the limited scale and narrow equity base increase vulnerability to operational or cash flow shocks.

2. Key Concerns:

• Negative net working capital position: Current liabilities (£40,079) slightly exceed current assets (£33,961), indicating potential liquidity constraints.
• Very low equity base: Share capital is only £100 with shareholders’ funds just over £1,100, providing limited financial cushioning.
• Micro-entity scale with no fixed assets: The absence of fixed assets and limited scale may constrain operational flexibility and long-term sustainability.

3. Positive Indicators:

• Timely compliance: Accounts and confirmation statements are filed on time, reflecting good regulatory adherence.
• Stable or slightly improving net assets: Net assets have increased slightly from £1,048 in 2021 to £1,158 in 2024, indicating some retained profitability or capital injection.
• Growth in workforce: The average number of employees increased from 5 to 7 over the last reported period, suggesting operational growth.

4. Due Diligence Notes:

• Investigate cash flow management and short-term creditor arrangements to assess liquidity risk more deeply.
• Review the nature of current liabilities to determine if any are overdue or at risk of crystallizing into insolvency triggers.
• Assess the business model sustainability given the micro-entity status, lack of fixed assets, and reliance on working capital.
• Confirm no director disqualifications or governance issues beyond the data provided, particularly given the small shareholder/director base.
• Verify the accuracy of reported prepayments and accrued income (£7,500) and their impact on net current assets.