Company Number: OC443723

Analysis Date: 2025-07-29 12:25 UTC

1. Risk Rating: LOW

The company demonstrates a solid net asset position relative to its micro-entity status, with no current liabilities reported in the latest financial year. It has timely filed accounts and confirmation statements, indicating good compliance and governance. The absence of any overdue filings or liquidation status adds to the low immediate risk profile.

2. Key Concerns:

• Declining net assets: Net assets decreased from £61,259 (2024) to £43,517 (2025), a drop of approximately 29%, which may indicate operational challenges or asset disposals.
• Reduced current assets: Current assets decreased significantly from £52,115 (2024) to £35,666 (2025), potentially impacting liquidity.
• Limited scale and scope: As a micro-entity with only 2 employees, the business may have limited operational resilience or market influence.

3. Positive Indicators:

• No current liabilities in the latest year, indicating no immediate solvency pressures.
• Consistent filing history with no overdue accounts or confirmation statements, demonstrating regulatory compliance.
• Net current assets remain positive and substantial (£35,843), suggesting short-term liquidity is adequate.
• Ownership and control are clearly defined with two designated members holding equal voting and financial rights, simplifying governance oversight.

4. Due Diligence Notes:

• Investigate reasons behind the decline in net assets and current assets to assess sustainability of business operations.
• Review cash flow statements and profit & loss accounts (if available) to confirm operational profitability and cash generation.
• Confirm the nature of fixed assets and any impairments or disposals that might have affected the asset base.
• Assess client base, contracts, and revenue streams to evaluate business continuity risks.
• Verify no related party transactions or contingent liabilities that could pose hidden risks.