Company Number: 13477523

Analysis Date: 2025-07-29 15:06 UTC

1. Risk Rating: LOW

The company demonstrates a stable financial position with positive net current assets and shareholder funds increasing year-on-year. No overdue filings or liquidation status are present, indicating sound regulatory compliance.

2. Key Concerns:

• Low cash reserves relative to current liabilities (£1,870 cash vs £21,432 current liabilities), which could indicate potential short-term liquidity constraints.
• Dependence on debtors for significant current assets (£46,041), which may pose collection risk impacting cash flow.
• Directors' loans remain outstanding, albeit interest-free and repayable on demand, which could affect financial flexibility if not managed prudently.

3. Positive Indicators:

• Consistent growth in net current assets and shareholders’ funds from 2022 to 2024, showing operational profitability and retained earnings accumulation.
• Timely filing of accounts and confirmation statements with no overdue returns, demonstrating good governance and regulatory compliance.
• Active status with stable management; directors have relevant occupational experience aligned with the company’s industry.
• Small company exemption utilized appropriately, indicating the company operates within its scale and complexity.

4. Due Diligence Notes:

• Investigate the ageing and collectability of trade debtors to assess the risk of bad debts impacting liquidity.
• Review cash flow statements or management accounts (if available) to confirm operational cash generation and identify any seasonality or timing issues.
• Clarify the nature and terms of directors’ loans to understand any contingent liabilities or potential impact on capital structure.
• Confirm if there have been any material related party transactions beyond directors’ advances disclosed, as this could affect financial integrity.
• Assess any off-balance sheet liabilities or contingent risks not disclosed in the filed accounts.