Company Number: 13840831

Analysis Date: 2025-07-29 12:57 UTC

1. Risk Rating: LOW
   The company demonstrates a solid improvement in net current assets and net asset position over the last reported financial year. It is active, compliant with filing deadlines, and free from liquidation or administration status, indicating low immediate financial or regulatory risk.

2. Key Concerns:

• Concentration of Control: Ownership and control are split between two individuals, each holding 25-50% shares and voting rights, which may pose governance risks if disagreements arise.
• Limited Scale and Resources: The company operates with a single employee and very modest tangible fixed assets, potentially limiting operational flexibility and growth capacity.
• Debtor Concentration and Credit Risk: A significant portion of current assets consists of debtors (£67,230 as of 2025), with no detailed disclosure on debtor age or credit quality, which could impact liquidity if not managed carefully.

3. Positive Indicators:

• Improved Financial Position: The company moved from a negative net current asset position in 2024 to a positive £38,574 in 2025, reflecting stronger working capital management.
• Compliance and Timeliness: No overdue filings for accounts or confirmation statements are recorded, suggesting good governance and regulatory compliance.
• Stable Director and Control Structure: The sole director remains consistent since incorporation, and PSCs are clearly identified, enhancing transparency.

4. Due Diligence Notes:

• Debtor Analysis: Investigate the composition, aging, and collectability of trade and other debtors to assess liquidity risk.
• Revenue and Profitability Trends: Obtain detailed profit and loss information to understand operational sustainability, as P&L reserve figures suggest limited retained earnings.
• Governance Arrangements: Review shareholder agreements or any arrangements between the two controlling persons to clarify decision-making processes and conflict resolution mechanisms.
• Business Model and Client Base: Clarify the company's business model under SIC 70229, client diversity, and contract terms to evaluate operational stability.