Company Number: 12550723

Analysis Date: 2025-07-29 20:22 UTC

1. Risk Rating: MEDIUM
   The company presents a moderate risk profile. While it is currently active and compliant with filing obligations, there are some concerns regarding liquidity fluctuations and creditor balances that warrant caution.

2. Key Concerns:

• Liquidity volatility: Current liabilities have materially decreased from £215k in 2023 to £95k in 2024, while current assets also fell from £241k to £198k, indicating significant balance sheet shifts that may reflect cash flow or operational issues.
• Trade creditors and other creditors concentration: The 2024 accounts show a switch to a negative trade creditor balance (-£8k) and a substantial increase in other creditors (£72k vs. £10k in 2023), which could imply unusual payment patterns or accounting classifications affecting creditor reliability.
• Limited scale and shareholder funds: With share capital at only £110 and shareholders’ funds at £102k, the company remains small and relatively thinly capitalised, which limits its buffer against operational or market shocks.

3. Positive Indicators:

• Improved net current assets: Net current assets increased substantially to £102k in 2024 from £26k in 2023, showing an improved short-term financial position.
• Compliance and governance: The company has filed accounts and confirmation statements on time with no overdue filings, indicating good regulatory compliance.
• Stable workforce: The number of employees remained steady at 3 over the past two years, suggesting operational continuity.

4. Due Diligence Notes:

• Investigate the nature and timing of the significant changes in trade and other creditors between 2023 and 2024 to understand if these reflect payment delays, reclassifications, or other operational issues.
• Review cash flow statements (not provided) to assess actual liquidity trends and ability to meet short-term obligations, given the fluctuations in working capital components.
• Confirm the sustainability of revenue streams and contract backlog, especially as turnover and profit figures are not disclosed here.
• Assess the impact of director changes, particularly the recent resignation of one director in mid-2024, on management stability and strategic direction.
• Examine whether related party transactions exist, as the controlling party is a corporate entity (Sea Green Investments Ltd), which may influence financial dealings.