Company Number: 13121061

Analysis Date: 2025-07-20 14:39 UTC

1. Risk Rating: MEDIUM
   The company shows a significant improvement in net assets from a deficit position in prior years to a positive net asset figure as of the latest accounts. However, the absolute values remain low, and the net current assets are marginal, indicating limited financial buffers.

2. Key Concerns:

• Thin Net Current Assets: At £2,114, net current assets are very modest. This suggests limited working capital to cover short-term liabilities, posing liquidity risks should unforeseen expenses arise.
• Prior Negative Equity: The company reported negative net assets (£-7,865) in the previous two years, which may indicate prior solvency issues that have only recently been addressed.
• Minimal Share Capital and Employee Base: Share capital is minimal (£100), and the company has only one employee (a director), which may limit operational resilience and the ability to scale or manage operational risks effectively.

3. Positive Indicators:

• Recent Positive Net Asset Position: The turnaround from negative to positive net assets in the latest financial year is encouraging and may reflect improved financial management or increased profitability.
• No Overdue Filings: Accounts and confirmation statements are filed on time, indicating compliance with statutory requirements and good governance practices.
• Stable Directorship and Control: The same two directors have been in place since incorporation, with clear control structures and no reported disqualifications or governance issues.

4. Due Diligence Notes:

• Review the detailed profit and loss accounts to understand the drivers behind the shift from negative to positive net assets, including revenue streams, expense management, and any one-off items.
• Investigate cash flow statements (if available) to assess liquidity trends and the company's ability to generate operating cash flows.
• Confirm the nature of liabilities within current liabilities to assess any concentrated creditor risk or short-term debt pressures.
• Consider the business plan and growth projections given the micro-entity scale and minimal staffing to evaluate operational sustainability.
• Verify there are no contingent liabilities or pending regulatory issues not disclosed in the accounts.