Company Number: 13756904

Analysis Date: 2025-07-20 17:55 UTC

1. Risk Rating: LOW
   The company demonstrates a solid net asset position relative to current liabilities and has maintained positive net current assets over recent years. There are no overdue filings or indications of regulatory non-compliance, which supports a low risk profile at present.

2. Key Concerns:

• Limited financial disclosure: Being a micro-entity, the company files abbreviated accounts which omit profit and loss details, constraining a full assessment of profitability and cash flow trends.
• Fixed assets decline: Fixed assets decreased sharply from £2,303 in 2023 to £901 in 2024, meriting review to understand whether this reflects disposals or impairment.
• Small scale and concentration risk: The business is small with only 3 employees and control concentrated in a single director/shareholder, which may pose operational continuity risks.

3. Positive Indicators:

• Strong liquidity position: Net current assets increased slightly to £81,195 in 2024, indicating the company has adequate short-term assets to cover liabilities.
• Consistent net assets: Shareholders' funds are stable around £73,000, suggesting capital preservation.
• Compliance: No overdue accounts or confirmation statements, and the company was incorporated recently with timely filings.

4. Due Diligence Notes:

• Obtain management accounts or cash flow statements to assess operating performance and cash generation.
• Clarify the nature and reason for the fixed asset reduction to determine if it impacts operational capacity.
• Evaluate dependency on the sole director and potential succession or governance arrangements.
• Investigate customer base and revenue streams given the niche industry (millinery manufacturing) and small company size.