Company Number: 12947510

Analysis Date: 2025-07-29 17:15 UTC

1. Risk Rating: LOW to MEDIUM
   Justification: The company shows a strong improvement in net current assets and net assets in the latest financial year, indicating enhanced solvency. However, the significant increase in current liabilities and creditors falling due after more than one year in 2024 compared to prior years warrants caution. The company is micro-sized with minimal filing complexity and no overdue returns, which supports operational compliance and transparency.

2. Key Concerns:

• Substantial rise in current liabilities within one year (from £36k in 2023 to £600k in 2024), which may pressure liquidity despite improved net current assets.
• Long-term creditors increased from £51k to £170k in 2024, suggesting higher debt obligations that should be monitored for repayment capacity.
• Very small share capital (£100) indicating limited equity buffer, potentially increasing reliance on external financing or creditors.

3. Positive Indicators:

• Strong growth in current assets from £103k (2023) to £895k (2024), showing improved asset base and potential cash or receivables position.
• Positive net current assets of £295k in 2024, indicating the company can cover short-term liabilities with current assets.
• Consistent filing history with no overdue accounts or confirmation statements, demonstrating good compliance practices.
• Stable management with a director appointed from incorporation and no indications of governance issues.

4. Due Diligence Notes:

• Review the nature and terms of the increased current and long-term liabilities to assess repayment schedules and potential refinancing risks.
• Investigate the composition of current assets to verify liquidity quality (e.g., cash vs. receivables or inventory).
• Confirm if the company has any contingent liabilities or off-balance sheet obligations not reflected in micro-entity accounts.
• Assess business model sustainability given the micro-entity scale and wholesale trade sector, including customer concentration and supplier dependencies.
• Verify absence of any director disqualifications or regulatory sanctions beyond publicly available data.