Company Number: 13749782

Analysis Date: 2025-07-20 18:56 UTC

1. Risk Rating: LOW
   The company demonstrates a strong net asset position relative to its size, with positive net current assets and shareholders' funds. There are no overdue filings or indications of financial distress. The micro-entity reporting status limits the detail available but the data suggests a stable financial footing.

2. Key Concerns:

• Declining net assets: Net assets decreased from £217,489 in 2022 to £185,704 in 2023, a reduction that merits understanding the cause, although still positive and substantial for a micro-entity.
• Long-term liabilities increase: Creditors falling due after more than one year increased markedly from £8,000 to £43,135, potentially indicating increased long-term debt or obligations.
• Limited scale and financial disclosure: As a micro-entity with only two employees (including directors), the company’s operational scale is small, which may limit diversification and resilience.

3. Positive Indicators:

• Strong liquidity: The company reports net current assets of £206,183 (2023), indicating good short-term solvency and ability to cover current liabilities.
• Compliance: No overdue statutory filings are noted for accounts or confirmation statements, reflecting adherence to regulatory requirements.
• Consistent management: The same two directors have been in place since incorporation, indicating stable governance and control.

4. Due Diligence Notes:

• Investigate the nature and terms of the increased long-term liabilities to assess repayment risk and impact on financial stability.
• Review the reasons behind the decline in net assets between 2022 and 2023, including any operational losses or asset write-downs.
• Obtain more detailed financial information if possible, beyond micro-entity accounts, to better understand profitability, cash flow, and operational performance.
• Consider the business model and market conditions in the "Other engineering activities" sector to assess revenue sustainability and growth prospects.