Company Number: 12494218

Analysis Date: 2025-07-20 16:49 UTC

1. Risk Rating: MEDIUM
   The company shows some warning signs in liquidity with net current liabilities at the latest year-end, although it remains solvent on a total net asset basis. Its micro-entity scale and one-employee operation limit operational risk but also reflect a small, possibly fragile business.

2. Key Concerns:

• Liquidity deterioration: Net current liabilities worsened to £805 negative in 2024 from positive £2,439 in 2023, indicating potential short-term cash flow stress.
• Declining net assets: Shareholders’ funds have fallen significantly from £3,039 in 2023 to £586 in 2024, reflecting a weakening equity base.
• Director advances: The director has advanced £1,638 to the company, which may indicate reliance on personal funds to support operations.

3. Positive Indicators:

• Compliance: No overdue filings for accounts or confirmation statements, suggesting good governance and regulatory compliance.
• Sole ownership and control: Ms Daisy Dier James holds 75-100% ownership and voting rights, enabling clear decision-making and control.
• Stable business focus: The company has maintained consistent SIC classification and appears to have a stable operational focus in professional services.

4. Due Diligence Notes:

• Investigate the cause of the decline in net current assets and whether this is due to increased payables, slow collections, or other operational issues.
• Review cash flow statements or bank reconciliations if available to assess liquidity management and cash reserves.
• Clarify the nature of the director’s advances—are these loans, capital injections, or other forms of financial support?
• Consider the company’s client base, revenue stream stability, and growth prospects given the small size and recent incorporation (2020).
• Confirm no related-party transactions or contingent liabilities that may not be fully disclosed in micro-entity filings.