Company Number: 13937667

Analysis Date: 2025-07-29 20:53 UTC

1. Risk Rating: MEDIUM
   The company shows a moderate risk profile. While it remains active with no overdue filings, the latest financials reveal declining liquidity and net assets, indicating potential cash flow pressures. The micro-entity scale and limited employee base also suggest a small operational footprint with constrained resources.

2. Key Concerns:

• Liquidity Decline: Net current assets dropped from £3,000 (2023) to a negative £250 (2024), signaling short-term liabilities exceeding current assets which may impede meeting immediate obligations.
• Reduced Net Assets: Total net assets decreased from £10,000 to £8,750, evidencing a slight erosion of equity possibly due to operational losses or asset disposals.
• Concentrated Control and Management: Single director and 100% ownership by Mr. Ibrahim Medani may pose governance and succession risks, particularly if the business faces operational challenges.

3. Positive Indicators:

• Compliance: No overdue accounts or confirmation statements, indicating regulatory compliance and good standing with Companies House.
• Stable Ownership: Clear control structure with an identified person with significant control, facilitating decision-making and accountability.
• Operating Continuity: The company has maintained active status since incorporation in 2022 with ongoing filings and a consistent reporting framework under micro-entity provisions.

4. Due Diligence Notes:

• Investigate the reasons behind the decrease in current assets and increase in current liabilities to assess cash flow and working capital management.
• Review the income statement and cash flow details (not provided) to understand profitability and operational cash generation.
• Evaluate any contingent liabilities or off-balance sheet risks not captured in the balance sheet.
• Consider assessing director’s plans for business growth, capitalization, and management continuity given the single-person governance structure.
• Confirm existence and valuation of fixed assets reported and any depreciation or impairment taken.