Company Number: 13044220

Analysis Date: 2025-07-29 13:35 UTC

1. Risk Rating: LOW
   The company demonstrates a strong financial position with significant net current assets and net assets relative to current liabilities. It maintains a large cash balance and shows no overdue filings or indications of financial distress.

2. Key Concerns:

• Reliance on Director Loan Account: The director loan balance fluctuates significantly (£80k to over £110k advanced and then repaid partially), which may indicate reliance on director's funds for working capital.
• Limited Operational Scale: The company has only one employee (the director), which could pose operational risks if key person dependency is high.
• Deferred Tax Liability: A small deferred tax provision is present, which should be monitored for any future tax obligations impacting liquidity.

3. Positive Indicators:

• Strong Liquidity: Cash at bank increased substantially to over £2.1 million in 2023, providing ample liquidity to meet short-term obligations.
• Healthy Working Capital: Net current assets of approximately £2.0 million indicate solid short-term financial health.
• Compliance: No overdue statutory filings or accounts; last accounts filed timely and no audit exemption issues.
• Ownership and Control: Single director and 75-100% shareholder provides clear governance and control without apparent conflicts.

4. Due Diligence Notes:

• Verify the nature and stability of cash balances, confirming they are not restricted or encumbered.
• Review the business model and revenue streams in detail, as turnover figures are not disclosed in the provided data.
• Understand the director loan transactions and any potential risks related to repayment or additional director funding.
• Confirm the company’s client base and contract backlog to assess operational sustainability given the small workforce.
• Check for any contingent liabilities or off-balance sheet risks not disclosed in the accounts.