Company Number: 13846075

Analysis Date: 2025-07-29 19:36 UTC

1. Risk Rating: MEDIUM
   The company shows modest net current assets and positive shareholders’ funds, indicating some capacity to meet short-term obligations. However, the size of trade and other creditors relative to cash and debtors, combined with director turnover and a short operating history, introduce moderate risk.

2. Key Concerns:

• Working Capital Pressure: Current liabilities (£339,833) are close to current assets (£376,615), leaving a narrow net current asset buffer (£36,782). The relatively low cash balance (£74,175) against substantial creditors suggests potential liquidity tightness.
• High Debtor Concentration: Debtors (£302,440) form a large portion of current assets, which may indicate reliance on timely collections. Any delays in debtor payments could exacerbate liquidity issues.
• Director Turnover and Governance: Several director appointments and resignations occurred within a short period (notably in early 2024), which may imply instability or restructuring at the management level. This could affect operational continuity and strategic direction.

3. Positive Indicators:

• Compliance with Filing Requirements: Accounts and confirmation statements are filed on time with no overdue filings or audit exemptions properly applied, indicating regulatory compliance.
• Modest but Increasing Equity Base: Shareholders’ funds increased from £30,112 in 2022 to £36,782 in 2023, showing growth in net assets.
• Established Accounting Practices: The company adheres to FRS 102 and small companies regime accounting standards, providing reasonable transparency in financial reporting.

4. Due Diligence Notes:

• Examine Debtor Quality and Ageing: Review the composition and aging profile of trade debtors to assess collectability risks and potential impact on liquidity.
• Investigate Creditor Terms and Payment Practices: Understand the nature and terms of the significant creditors balance to evaluate cash flow timing and any payment pressures.
• Assess Management Changes Impact: Enquire about reasons for recent director resignations and appointments to evaluate governance stability and strategic continuity.
• Review Business Model and Revenue Streams: As the company operates in “Other business support service activities,” confirm the sustainability and diversity of its client base and contracts since the company is relatively new (incorporated 2022).