Company Number: 13953167

Analysis Date: 2025-07-20 11:23 UTC

1. Risk Rating: LOW
   The company demonstrates positive net assets that have increased substantially in the latest financial year, indicating improved solvency. There are no overdue filings or liquidation status, and the business is micro-sized with minimal complexity, lowering operational risks.

2. Key Concerns:

• Concentration of control: 100% ownership and control by a single director may pose governance risks and potential vulnerabilities in decision-making.
• Limited operational scale: With only one employee (the director) and micro-entity status, the company’s business operations may be limited in scope and scalability.
• Industry classification mismatch: The company reports SIC codes for sports education and engine manufacturing, which are very different sectors; this could reflect unclear business focus or reporting inconsistencies.

3. Positive Indicators:

• Strong net asset growth: Net assets increased from £913 in 2023 to £11,759 in 2024, showing a significant improvement in financial position.
• Positive working capital: Net current assets rose markedly from £720 to £11,659, indicating good short-term liquidity.
• Up to date compliance: All statutory accounts and confirmation statements are filed on time with no overdue returns or penalties.
• No audit exemption justified: The company appropriately uses micro-entity accounting provisions, indicating compliance with regulatory requirements.

4. Due Diligence Notes:

• Review detailed nature of the business activities to clarify conflicting SIC codes and assess operational sustainability.
• Investigate source of the large increase in prepayments/accrued income (£9,829 in 2024) to understand if these are genuine assets or accounting timing issues.
• Assess the director’s background and capacity to run the company effectively alone, given sole control and employment.
• Confirm whether the company has adequate insurance and compliance controls, considering limited staffing and ownership concentration.