Company Number: NI684187

Analysis Date: 2025-07-20 18:46 UTC

1. Risk Rating: LOW to MEDIUM
   The company demonstrates a solid net asset position and positive working capital, indicative of solvency and liquidity. However, a recent decline in net assets and a concentration of control among two related individuals warrant monitoring.

2. Key Concerns:

• Decline in Net Assets: Net assets decreased from £223,976 in 2023 to £165,130 in 2024, a notable reduction (approximately 26%), which may signal emerging financial pressures or increased liabilities.
• Concentration of Control: Two individuals, Mr. Stephen Henderson and Mrs. Kathryn Henderson, collectively control 50-100% of shares and voting rights, which can pose governance risks if not managed with appropriate transparency and oversight.
• Limited Financial History and Scale: Being a micro-entity incorporated in late 2021 with minimal fixed assets (£300) and only two employees, the company’s operational scale and track record are limited, increasing uncertainty around operational sustainability.

3. Positive Indicators:

• Strong Liquidity Position: Current assets of £235,065 exceed current liabilities of £70,235, resulting in a healthy net current asset position of £164,830, indicating good short-term liquidity.
• No Overdue Filings: All statutory accounts and confirmation statements are filed on time, showing compliance with regulatory requirements and reducing administrative risk.
• Stable Management: The director has been in place since incorporation with no evidence of disqualifications or adverse conduct, supporting operational stability.

4. Due Diligence Notes:

• Financial Performance Details: Investigate the cause of the net asset decrease, including reviewing profit and loss accounts, cash flow statements, and any contingent liabilities or off-balance sheet exposures.
• Related Party Transactions: Assess any transactions between the controlling shareholders and the company to identify potential conflicts of interest or financial dependencies.
• Business Model and Revenue Streams: Obtain more detailed information on the company’s activities within SIC code 70100 (activities of head offices) to evaluate sustainability and diversification of income sources.
• Employee and Management Structure: Clarify the roles and compensation of the two employees including the director, to understand fixed cost commitments and operational capacity.