Company Number: 13116278

Analysis Date: 2025-07-20 11:14 UTC

1. Risk Rating: LOW
   Irwell Fire Ltd demonstrates a stable financial position with positive net assets and healthy net current assets. The company is compliant with filing deadlines, and there are no indications of distress or regulatory issues. While the company is micro-sized with a single director and employee, the financial data shows sufficient liquidity and solvency to meet obligations.

2. Key Concerns:

• Limited Scale and Resources: Being a micro-entity with only one employee and a single director concentrating full ownership and control poses operational dependency risk.
• Declining Asset Base: Fixed assets decreased from £21,949 in 2021 to £13,071 in 2024, which may indicate asset disposals or lack of reinvestment.
• Modest Share Capital: Share capital of only £1.00 might limit financial flexibility for expansion or to absorb unexpected losses.

3. Positive Indicators:

• Strong Liquidity Position: Net current assets of £83,961 as of January 2024 indicate comfortable working capital availability relative to liabilities.
• Consistent Compliance: No overdue filings, accounts and confirmation statements are up to date, showing good governance and regulatory adherence.
• Solid Equity Base: Net assets remain positive at £96,072, with shareholders’ funds comprising retained earnings, indicating solvency.

4. Due Diligence Notes:

• Verify the nature of the fixed asset decline and assess whether it impacts operational capacity or is due to asset disposals.
• Evaluate the business model's sustainability given the very small workforce and sole director control.
• Review cash flow statements and bank balances for more granular insight into liquidity beyond balance sheet figures.
• Confirm absence of contingent liabilities or off-balance-sheet obligations that could affect solvency.
• Assess any related party transactions given the director’s full ownership and control.