Company Number: 13971399

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

1. Risk Rating: MEDIUM
   The company demonstrates positive net assets and shareholder funds, indicating solvency at the balance sheet date. However, the decline in net current assets from a positive £5,002 in 2023 to a negative £2,344 in 2024 signals emerging liquidity pressure. The company is relatively new (incorporated 2022) with limited financial history, which adds to uncertainty.

2. Key Concerns:

• Liquidity Deterioration: Current liabilities exceed current assets in 2024, indicating potential short-term cash flow challenges.
• Declining Net Assets: Net assets decreased by approximately £5,000 year-on-year, reducing the equity buffer.
• Single Director and Significant Control: The sole director and 100% controlling shareholder structure concentrates governance risk and may limit oversight.

3. Positive Indicators:

• Compliance with Filing Requirements: Accounts and confirmation statements are up to date with no overdue filings, suggesting good regulatory compliance.
• Positive Shareholders’ Funds: Despite declines, shareholder equity remains positive at £11,490, indicating the company is not insolvent.
• Consistent Workforce: The company maintains a small but stable employee base (three employees), consistent with its micro-entity classification.

4. Due Diligence Notes:

• Review cash flow statements or management accounts to understand the cause of the current asset decline and whether liquidity pressures are temporary.
• Assess trade creditor terms and any reliance on short-term financing or director loans to cover working capital gaps.
• Investigate the business model viability and revenue trends given the company’s short operating history.
• Confirm absence of any director disqualifications or adverse regulatory matters given the concentrated control structure.