Company Number: 13952255

Analysis Date: 2025-07-20 15:07 UTC

1. Risk Rating: LOW
   The company demonstrates a solid net asset position with positive working capital and no overdue filings. Its micro-entity status and recent incorporation imply limited but stable operations with low immediate solvency or liquidity risks.

2. Key Concerns:

• Limited Scale and Financial History: Incorporated in 2022 and classified as a micro-entity, the company has a brief operating history and relatively small balance sheet size, limiting the depth of financial track record.
• Decreasing Current Assets: Current assets have declined from £38,044 in 2023 to £19,405 in 2024, indicating potential fluctuations in cash or short-term receivables that merit monitoring.
• Concentration of Control: Single individual (director and sole significant controller) holds 75-100% ownership and voting rights, which could present governance risks in the absence of wider oversight.

3. Positive Indicators:

• Strong Net Asset Growth: Net assets increased from £28,784 in 2023 to £42,436 in 2024, reflecting improved financial strength.
• Positive Net Current Assets: Working capital remains positive (£14,704 in 2024), supporting liquidity to meet short-term obligations.
• Up-to-date Compliance: All statutory filings, including accounts and confirmation statements, are current with no overdue submissions or audit requirements, reducing regulatory risk.
• Increasing Fixed Assets: Notable growth in fixed assets from £1,117 to £27,955 suggests investment in operational capacity or equipment.

4. Due Diligence Notes:

• Review the nature of fixed assets acquired in 2024 to assess capital expenditure and its impact on cash flows.
• Investigate reasons behind the decrease in current assets and whether this reflects lower cash balances or receivable collections.
• Evaluate revenue trends and profitability metrics not disclosed here to confirm operational sustainability beyond balance sheet health.
• Confirm no undisclosed contingent liabilities or related party transactions given sole director control.
• Consider credit terms with suppliers and customers to assess working capital management in detail.