Company Number: 13133586

Analysis Date: 2025-07-20 12:32 UTC

1. Risk Rating: LOW
   The company demonstrates a solid net asset position that has grown steadily year-on-year, with net assets increasing from £45.3k in 2021 to £94.9k in 2024. Current assets significantly exceed current liabilities, indicating good short-term liquidity. All statutory filings are up to date with no overdue accounts or confirmation statements.

2. Key Concerns:

• Low Share Capital: The nominal share capital of £1.00 is minimal, which may indicate limited initial equity funding, though this is common in micro-entity structures.
• Fixed Assets Decline: Fixed assets have decreased from £41.4k in 2021 to £21.5k in 2024, which may reflect asset disposals or depreciation; the impact on operational capacity is unclear.
• Limited Financial Disclosure: As a micro-entity, detailed profit and loss data and cash flow information are not available, restricting deeper analysis of profitability and operational cash flow.

3. Positive Indicators:

• Strong Working Capital: Net current assets improved substantially from £3.9k in 2021 to £73.4k in 2024, indicating increased liquidity and ability to meet short-term obligations.
• Consistent Growth in Net Assets: The steady increase in net assets and shareholders’ funds suggests retained earnings or capital injections supporting balance sheet strength.
• Compliance and Governance: Filing deadlines for accounts and confirmation statements are met punctually, with no overdue filings or compliance issues noted. The director has been continuously appointed since incorporation with no adverse records.

4. Due Diligence Notes:

• Review Profitability and Cash Flow: Obtain detailed management accounts or tax filings to assess profitability trends and operational cash generation.
• Understand Fixed Assets Reduction: Investigate nature of fixed asset decline and whether it affects business operations or reflects normal depreciation.
• Confirm Director Background: Although no disqualifications are recorded, further background checks on the sole director could provide additional assurance.
• Verify Customer Concentration and Revenue Stability: As SIC code 62090 covers IT service activities, understanding client base and contract stability is important for operational sustainability.