Company Number: 13647891

Analysis Date: 2025-07-20 13:03 UTC

1. Risk Rating: MEDIUM
   The company shows improving financial health with positive net current assets and net assets in the latest year, but the business remains small and relatively new. The increase in accruals and deferred income, along with past negative working capital, pose moderate concerns for liquidity and operational stability.

2. Key Concerns:

• Past liquidity stress indicated by negative net current assets in 2022 and 2023, which could have impacted short-term obligations.
• Accruals and deferred income of £49,000 in 2024 represent a sizeable liability relative to net assets (£37,170), which may affect cash flow timing.
• Limited financial history (since incorporation in late 2021) reduces visibility on longer-term sustainability and profitability trends.

3. Positive Indicators:

• Strong recovery in net current assets from negative £25,522 in 2023 to positive £63,666 in 2024 suggests improved working capital management or increased cash inflows.
• Consistent small workforce (6 employees) indicates operational stability and controlled overheads.
• No overdue filings and active status demonstrate compliance with statutory requirements and governance discipline.
• Shareholder control is concentrated with a single experienced director, which may allow agile decision-making.

4. Due Diligence Notes:

• Review detailed cash flow statements and profit and loss account (not publicly filed) to assess profitability and cash generation.
• Investigate nature and timing of accruals and deferred income to understand liquidity implications.
• Obtain background on the director’s track record and potential related party transactions given sole ownership.
• Monitor ongoing compliance with filings, given the micro-entity exemption from audit limits external assurance.