Company Number: 12736379

Analysis Date: 2025-07-29 16:17 UTC

1. Risk Rating: MEDIUM
   The company shows a moderate risk profile. While it remains active with no overdue filings, there are some liquidity concerns evidenced by persistent net current liabilities and a declining asset base. The business appears small and closely held, which may limit operational scalability.

2. Key Concerns:

• Liquidity Pressure: Current liabilities exceed current assets for the last two reported years (2023 and 2024), indicating potential short-term cash flow constraints.
• Declining Fixed Assets & Net Assets: Fixed assets and net assets have decreased from £135k and £106k respectively in 2021 to £108k and £88k in 2024, suggesting possible asset disposals or depreciation impacting capital strength.
• Small Scale & Single Director Control: The company is a micro entity with only 2 employees and a sole director/shareholder, which could pose governance and succession risks.

3. Positive Indicators:

• No Filing Delinquencies: Both accounts and confirmation statements are filed on time, indicating regulatory compliance.
• Positive Net Assets: Despite liquidity pressure, net assets remain positive and materially above share capital, demonstrating retained earnings or reserves.
• Stable Employee Growth: Increase from 1 to 2 employees shows some operational activity and potential growth.

4. Due Diligence Notes:

• Review the company's recent cash flow statements and creditor payment terms to assess working capital management.
• Investigate the reasons behind the reduction in fixed assets and net assets for sustainability implications.
• Confirm the operational nature of the business under SIC 96090 and check for any dependencies on the director or key contracts.
• Ascertain if there are any contingent liabilities or off-balance-sheet obligations not reflected in the micro-entity accounts.
• Evaluate the risks related to single-person control, including succession planning and potential conflicts of interest.