Company Number: 13192654

Analysis Date: 2025-07-29 17:29 UTC

1. Risk Rating: MEDIUM
   The company exhibits moderate financial stability with positive net assets and shareholders' funds but shows a recent decline in retained earnings and a reduction in current assets. The business is active and compliant with filings, but the decreased cash and debtors alongside a net loss suggests cautious monitoring.

2. Key Concerns:

• Declining retained earnings, indicating a loss of £22,038 in the last financial year, which may impact long-term profitability.
• Significant drop in current assets from £615,103 to £301,166 and cash from £256,559 to £168,170, potentially signaling liquidity pressure.
• Director turnover with one director resigning recently may affect operational continuity and governance stability.

3. Positive Indicators:

• Positive net current assets (£199,425) and net assets (£214,223) demonstrate the company currently has more short-term assets than liabilities, supporting solvency.
• Timely filing of accounts and confirmation statements with no overdue returns reflects good regulatory compliance.
• Shareholder funds remain strong at over £214k, supported by share premium and retained earnings despite the recent deficit.

4. Due Diligence Notes:

• Review detailed profit and loss accounts (not filed publicly due to small company exemption) to understand the nature and drivers of the recent loss.
• Investigate reasons for the significant decrease in trade debtors and current assets to assess potential cash flow risks.
• Assess the impact of the recent director resignation on management and strategic direction.
• Confirm the adequacy of provisions for liabilities, especially the deferred tax provision introduced in 2024.
• Evaluate any off-balance sheet liabilities or contingent liabilities not disclosed in the filed accounts.