Company Number: 12665037

Analysis Date: 2025-07-29 12:41 UTC

1. Risk Rating: MEDIUM
   The company demonstrates positive net current assets and net assets with modest but consistent growth, suggesting a stable financial position. However, very low cash balances combined with significant current liabilities and a high level of debtors raise liquidity concerns that moderate the risk rating.

2. Key Concerns:

• Liquidity Risk: Cash at bank is minimal (£256 in 2024) relative to current liabilities (£151,126), indicating potential cash flow constraints despite positive net current assets.
• Debtors Concentration and Collectability: Debtors remain high (£100,580) and have decreased significantly from previous years, suggesting possible collection issues or changes in credit terms that require scrutiny.
• Director Changes and Control: Recent director resignations and appointments in 2025 may affect operational continuity. Additionally, significant control lies with John Kellys (London) Limited and two individuals with overlapping voting rights, which may impact governance dynamics.

3. Positive Indicators:

• Consistent Net Asset Growth: Net assets increased from £12,089 (2023) to £14,221 (2024), indicating retained earnings accumulation and capital preservation.
• No Overdue Filings: The company’s accounts and confirmation statements are filed on time, suggesting compliance with statutory obligations.
• Exemption from Audit: The company qualifies for audit exemption due to its size, consistent with its classification and reducing administrative burden.

4. Due Diligence Notes:

• Investigate the nature and aging profile of debtors to assess collectability and credit risk.
• Review cash flow statements and working capital management practices to understand liquidity management and timing of payables and receivables.
• Clarify the reason for director turnover in 2025 and assess any impact on strategic direction or operational stability.
• Examine the relationship and financial transactions between the company and its major shareholder John Kellys (London) Limited for potential related party risks.
• Confirm the impact of minimal cash holdings on day-to-day operations and ability to meet short-term obligations.