Company Number: 13820982

Analysis Date: 2025-07-20 18:18 UTC

1. Risk Rating: MEDIUM
   The company demonstrates a decline in net current assets turning negative in the latest financial year, indicating potential liquidity pressures. However, it remains solvent with positive net assets and shareholder funds, albeit substantially reduced compared to prior years. The absence of overdue filings or liquidation status reduces immediate regulatory concerns.

2. Key Concerns:

• Liquidity deterioration: Net current assets fell from £7,157 in 2023 to -£14,705 in 2024, signaling short-term cash flow constraints.
• Declining net assets: Shareholders’ funds decreased sharply from £43,359 in 2023 to £7,799 in 2024, raising questions about sustained profitability or asset utilization.
• Concentrated control and director loan: A director’s loan account of £60,630 appears as a significant creditor, which may indicate reliance on related party financing and potential risk if repayment terms are unfavorable.

3. Positive Indicators:

• Compliance: The company has no overdue accounts or confirmation statements, indicating good regulatory standing.
• Active status with ongoing operations: The company is active in the IT consultancy sector and maintains tangible fixed assets, supporting operational continuity.
• Sole director and 75-100% shareholder alignment could facilitate swift decision-making and governance consistency.

4. Due Diligence Notes:

• Review cash flow statements and profit and loss details (not provided) to understand causes of liquidity erosion and net asset decline.
• Examine terms and sustainability of the director’s loan account to assess financial risk from related party transactions.
• Investigate provisions for liabilities (£7,501 in 2024) for potential contingent liabilities that may impact solvency.
• Confirm the company's revenue trends and client base stability since turnover figures are not disclosed in the provided data.
• Assess any off-balance sheet liabilities or contingent risks not evident in filleted accounts.