Company Number: 12767004

Analysis Date: 2025-07-29 17:27 UTC

1. Risk Rating: MEDIUM
   The company is solvent on paper, with positive net assets and shareholders’ funds as of the latest accounts. However, there is a notable decline in current assets and net assets in the most recent year, which could signal emerging liquidity or operational challenges. The micro-entity status limits the financial disclosure, restricting a full risk assessment.

2. Key Concerns:

• Liquidity Decline: Current assets dropped sharply from £28,934 in 2023 to £3,315 in 2024, while current liabilities also decreased but to a lesser extent, resulting in a sharp reduction in net current assets from £8,552 to £1,584. This suggests a potential tightening of working capital.
• Decreasing Net Assets: Net assets declined from £28,496 in 2023 to £17,539 in 2024, indicating a possible erosion of equity or retained earnings which warrants investigation.
• Single Director and Employee: The company is managed and operated by one individual who is also the sole employee. This concentration of control and limited workforce could impact operational resilience and governance.

3. Positive Indicators:

• Compliance with Filings: Accounts and confirmation statements are up to date with no overdue filings, demonstrating regulatory compliance.
• Positive Net Assets: Despite recent declines, the company remains solvent with net assets exceeding liabilities.
• Active Website and Contact Information: The company maintains an active online presence and provides direct contact details, which supports operational transparency.

4. Due Diligence Notes:

• Investigate the reasons behind the substantial reduction in current assets and net assets between 2023 and 2024, including cash flow statements or creditor/debtor aging.
• Confirm whether the sole director has any history of disqualifications or adverse conduct records.
• Assess the company’s order book, client base, and pipeline to evaluate operational sustainability beyond the financial snapshot.
• Review any contingent liabilities or off-balance sheet commitments not disclosed in the micro-entity accounts.
• Understand the company’s business model scalability given it operates with a single employee.