Company Number: 12719946

Analysis Date: 2025-07-20 13:02 UTC

1. Risk Rating: MEDIUM
   Justification: The company has shown a significant turnaround in net assets from a negative £29,943 in 2023 to a positive £23,190 in 2024, indicating improved financial health. However, current liabilities remain high relative to current assets and there are ongoing creditor balances owed to associates and other creditors that require monitoring. The small share capital and reliance on intercompany debtors may present risks.

2. Key Concerns:

• Liquidity risk due to current liabilities of £188,514 closely matching current assets of £210,938, with a moderate net current asset buffer of £22,424. Cash position improved but still modest at £63,469.
• Reliance on amounts owed by group undertakings (£144,210) as the main component of debtors raises questions on collectability and group financial stability.
• Historical accumulated losses until 2023 indicate past operational challenges; sustainability of recent profitability and business model needs confirmation.

3. Positive Indicators:

• Significant improvement in net assets and working capital from prior years, moving from negative to positive territory.
• Consistent filing record and up-to-date accounts and confirmation statements suggest good regulatory compliance and governance.
• Small employee base (2 employees) indicates lean operations, potentially aiding cost control and agility.

4. Due Diligence Notes:

• Assess the nature and creditworthiness of the group undertakings owing £144,210 to evaluate the risk of debtor impairment.
• Review cash flow statements and management forecasts to confirm liquidity position and ability to meet short-term obligations.
• Investigate the reasons behind past accumulated losses and the drivers of recent financial improvement to gauge operational sustainability.
• Confirm there are no director disqualifications or regulatory issues beyond what is publicly disclosed.
• Verify the company’s business model under SIC codes 82990, 82110, and 70229 for market position and competitive risks.