Company Number: 13888128

Analysis Date: 2025-07-20 16:40 UTC

1. Risk Rating: LOW
   The company shows a positive net current asset position with increasing net assets year-on-year. There are no overdue filings or indications of regulatory non-compliance. Financial data reflects a stable liquidity position and growing equity, supporting a low risk rating.

2. Key Concerns:

• Reliance on trade debtors: Debtors represent a significant portion of current assets (£49k against £108k total current assets), which introduces some liquidity risk if collections slow.
• Modest scale and limited financial history: Incorporated recently in 2022, the company has only two years of financial data, limiting trend analysis and long-term viability assessment.
• Concentration of control: One individual holds 75-100% ownership and voting rights, which may pose governance and succession risks.

3. Positive Indicators:

• Healthy liquidity: Cash at bank increased from £35k to nearly £59k year-on-year, supporting operational stability.
• Positive working capital: Net current assets improved from £18k to £37k, indicating good short-term financial health.
• Compliance: Accounts and confirmation statement filings are up to date with no overdue notices or audit concerns.
• Growing operations: Employee count increased from 8 to 13, suggesting business expansion.
• Profit retention: Accumulated profits have doubled from approx £18k to £37k, enhancing shareholders’ funds.

4. Due Diligence Notes:

• Verify the aging and collectability of trade debtors to assess liquidity risk more precisely.
• Review cash flow statements and profit & loss data (not provided) to confirm operational profitability and cash generation.
• Understand customer concentration and contract stability given the human resources service nature of business (SIC 78300).
• Assess governance controls given the high share ownership concentration and key person risk.
• Confirm any related party transactions or commitments not visible in the filleted accounts.
• Monitor ongoing compliance as the company matures, including future audit requirements once thresholds are exceeded.