Company Number: 13526808

Analysis Date: 2025-07-29 16:04 UTC

1. Risk Rating: MEDIUM
   The company shows consistent but low turnover with minimal net assets and very limited cash reserves. Operating losses are marginal but persistent, indicating fragile profitability. However, no overdue filings or indications of formal distress reduce immediate solvency concerns.

2. Key Concerns:

• Liquidity Constraints: Cash balance is only £100 with net current assets at the same level, indicating extremely limited working capital to cover short-term obligations or unexpected expenses.
• Marginal Profitability: Operating and net losses, though small (-£70 in 2024), persist with administrative expenses nearly equaling gross profit, suggesting operational inefficiency or cost structure issues.
• Minimal Asset Base: The absence of fixed assets and very low net assets (£100) constrain borrowing capacity and financial flexibility.

3. Positive Indicators:

• Timely Compliance: No overdue accounts or confirmation statements, showing good regulatory compliance and governance discipline.
• Stable Revenue: Turnover has remained steady around £83-84k for the last two years, demonstrating some operational continuity.
• Active Directors with Control: Both directors have significant control and appear engaged, which can be positive for decision-making and accountability.

4. Due Diligence Notes:

• Investigate the nature of revenue and client contracts to assess sustainability and growth prospects.
• Review the company’s cash flow management and any credit arrangements or related-party transactions to understand liquidity sources.
• Examine administrative expenses for potential reduction opportunities or unusual items.
• Clarify the absence of fixed assets and whether the company relies on subcontractors or leases equipment.
• Verify directors' backgrounds for any risk factors not apparent from filings.