Company Number: 14157059

Analysis Date: 2025-07-29 20:51 UTC

1. Risk Rating: MEDIUM
   The company is active with current filings up to date and no overdue accounts or confirmation statements. However, the financial performance shows a recent loss and declining turnover, with limited asset base and modest net assets. These factors suggest moderate risk regarding ongoing financial stability and operational sustainability.

2. Key Concerns:

• Declining Revenue and Profitability: Turnover dropped from £27,826 to £12,200 in the latest year with a small loss of £148 recorded, signaling potential operational difficulties or reduced demand.
• Limited Asset Base and Cash Reserves: Fixed assets are zero, and current assets decreased from £10,324 to £7,175, although net current assets increased due to reduced liabilities and recognition of prepayments. Cash specifics for the latest year are not separately detailed, which limits clarity on liquidity.
• Reliance on Director and Small Scale Operations: The company has only one employee (likely the director), which may constrain capacity and operational resilience. Also, the micro-entity status implies minimal disclosure and limited financial history to fully assess risk.

3. Positive Indicators:

• Compliance and Filing Diligence: No overdue filings or penalties reported; next accounts and confirmation statements are scheduled appropriately.
• Improved Net Assets: Net assets improved from £2,331 to £9,745 despite the loss, partly due to recognition of prepayments (£9,165) and reduced liabilities.
• No Indications of Financial Distress: The company is not in liquidation or administration and maintains positive net current assets and shareholders' funds.

4. Due Diligence Notes:

• Clarify the nature and timing of the significant prepayments (£9,165) reported at year-end and assess their recoverability and impact on cash flow.
• Review cash flow statements or bank balances to confirm liquidity position, as cash detail is absent for the latest year.
• Investigate the cause of turnover decline and loss, including client retention, market conditions, and cost management.
• Confirm director’s plans for business growth or restructuring to restore profitability and stabilize financial performance.