Company Number: 14554088

Analysis Date: 2025-07-29 16:16 UTC

1. Risk Rating: LOW
   The company demonstrates improving financial health with positive net current assets in the latest year and has complied with all filing deadlines on time. Its micro-entity status and small workforce suggest a manageable scale with limited complexity, reducing immediate solvency and liquidity risks.

2. Key Concerns:

• Marginal Working Capital: Net current assets improved to £7,626 in 2024 from a negative position in 2023, but the absolute cash buffer remains small relative to current liabilities (£74,875). This indicates limited liquidity headroom to absorb cash flow shocks.
• Limited Asset Base: Fixed assets are minimal (£1,195), implying limited collateral or tangible asset backing which may constrain alternative financing options if needed.
• Concentrated Control: Ownership and control lie entirely with two directors who also hold operational roles. While common in small companies, this concentration could lead to governance risks or challenges with succession and strategic oversight.

3. Positive Indicators:

• Compliance: No overdue filings, including accounts and confirmation statements, demonstrate good regulatory compliance and governance discipline.
• Improving Financial Position: The company has turned from a net current liability position in 2023 to a positive net current asset position in 2024, indicating operational improvements or successful working capital management.
• Stable Employment: The average number of employees remained constant at 2, consistent with a stable operational scale and controlled overheads.

4. Due Diligence Notes:

• Cash Flow Analysis: Investigate detailed cash flow statements or bank transaction histories to confirm liquidity resilience beyond balance sheet snapshots.
• Revenue and Profitability Trends: Since financial statements are unaudited and filleted, review management accounts or forecasts to assess business sustainability and growth prospects.
• Director Backgrounds: Conduct background checks on the two directors for any past regulatory or financial issues, given their central role in control and operations.
• Contractual and Customer Base: Understand client concentration and contract terms supporting the IT consultancy SIC code to evaluate operational stability and risk concentration.