Company Number: 12736494

Analysis Date: 2025-07-29 12:55 UTC

1. Risk Rating: MEDIUM
   Justification: The company shows positive net current assets and a reasonable asset base, but the significant increase in long-term liabilities and a halving of net assets in 2024 compared to 2023 raise concerns about solvency and financial stability. The absence of detailed profit and loss data limits full assessment.

2. Key Concerns:

• Substantial rise in long-term liabilities from £191k in 2023 to £241k in 2024, outpacing asset growth.
• Net assets decreased sharply from £94k in 2023 to approximately £42k in 2024, indicating erosion of equity.
• One director resigned in May 2024; potential impact on management continuity or governance should be reviewed.

3. Positive Indicators:

• Consistent positive net current assets (~£112k in 2024), suggesting short-term liquidity is maintained.
• Fixed assets have been stable or slightly increasing, indicating ongoing investment in operational capacity.
• The company is current with all statutory filings, including accounts and confirmation statements, demonstrating regulatory compliance.

4. Due Diligence Notes:

• Obtain and review detailed profit and loss statements and cash flow data to assess operational profitability and cash generation.
• Clarify the nature and terms of the increased long-term liabilities to evaluate solvency risk and repayment obligations.
• Investigate reasons behind the director resignation to understand any governance or operational risks.
• Confirm the current ownership structure and control post-director resignation, ensuring no material changes affecting control.