Company Number: 13816761

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

1. Risk Rating: LOW
   The company shows steady growth in turnover and net assets over the last two years, with positive net current assets and shareholders’ funds. There are no overdue filings or indications of insolvency or liquidation. The micro-entity status and small employee base limit complexity and operational risk.

2. Key Concerns:

• Limited scale of operations indicated by modest turnover (£84k) and a single employee, which could constrain resilience and scalability.
• Tax expense in 2024 appears disproportionately high (£14,157) relative to profit, which may impact cash flow if not managed carefully.
• Reliance on two directors who are also the primary shareholders could present concentration risk in governance and operational continuity.

3. Positive Indicators:

• Consistent growth in turnover (from £17k in 2022 to £84k in 2024) and net assets (from ~£5.9k to £27.7k) suggests improving financial health.
• Strong liquidity position demonstrated by net current assets of £26.4k against current liabilities of £14.3k as at March 2024.
• No overdue statutory filings or compliance issues reported; directors appear appropriately engaged with regulatory responsibilities.

4. Due Diligence Notes:

• Verify the nature and sustainability of revenue streams supporting turnover growth to assess future operational stability.
• Investigate the high tax charge relative to profit in 2024, including any deferred tax liabilities or one-off tax events.
• Review director and shareholder structure for any related-party transactions or potential conflicts of interest given the small management team and ownership concentration.
• Confirm absence of contingent liabilities or off-balance sheet obligations not disclosed in micro-entity accounts.