Company Number: 13556245

Analysis Date: 2025-07-20 18:36 UTC

1. Risk Rating: MEDIUM
   The company shows some signs of financial strain, notably a marked reduction in net current assets and shareholders’ funds year-over-year. While it remains solvent on a balance sheet basis, the sharp decline in working capital warrants caution.

2. Key Concerns:

• Declining Net Current Assets: From £40,934 in 2022 to £13,072 in 2023, suggesting tightening liquidity.
• Limited Financial Disclosure: Micro-entity accounts omit income and expenditure details, restricting full assessment of operational performance and cash flows.
• Concentration of Control: One individual holds 75-100% voting rights and appoints/removes directors, which may impact governance and strategic oversight.

3. Positive Indicators:

• Current Assets Exceed Current Liabilities: Despite decline, the company maintains positive working capital, indicating ability to meet short-term obligations.
• Up-to-Date Filing Compliance: No overdue accounts or confirmation statements, reflecting good regulatory compliance.
• Increasing Employee Base: Growth from 1 to 2 employees suggests some operational scaling.

4. Due Diligence Notes:

• Investigate the cause of the significant drop in net current assets and shareholders’ funds—whether due to increased liabilities, asset write-downs, or operational losses.
• Request detailed management accounts or cash flow statements to assess liquidity trends and operational profitability.
• Review governance practices given the high concentration of control with a single director and implications for decision-making and risk management.
• Confirm the nature and timing of liabilities due within one year to evaluate any potential upcoming cash flow pressures.