Company Number: 13885986

Analysis Date: 2025-07-29 19:13 UTC

1. Risk Rating: LOW
   The company's latest accounts indicate positive net current assets and net assets, with current liabilities well covered by current assets. Filing deadlines for accounts and confirmation statements are met, and the company status is active without any indication of insolvency or liquidation proceedings.

2. Key Concerns:

• Limited Cash Reserves: The company holds only £100 in cash at year-end, which may strain immediate liquidity despite overall net current assets being positive due to debtors.
• Young Company: Incorporated in 2022, the company has limited operating history, which presents uncertainty regarding its operational stability and market position.
• Single Director and PSC: The same individual holds all controlling interests and roles (director and secretary), which may raise governance and oversight concerns.

3. Positive Indicators:

• Positive Net Current Assets: £14,266 net current assets suggest the company can meet short-term obligations.
• Compliance with Filing: Accounts and confirmation statements are filed on time, indicating regulatory compliance.
• Ownership and Control Clarity: The sole director and PSC ownership is transparent, simplifying accountability.

4. Due Diligence Notes:

• Investigate the collectability and aging of debtors (£15,908) to assess true liquidity and risk of bad debts.
• Review cash flow statements (not provided) or request management accounts to evaluate operational cash flow and working capital management.
• Assess business model and contracts to gauge sustainability and growth prospects given the company's short trading history.
• Confirm no undisclosed contingent liabilities or off-balance sheet commitments.
• Understand the reason for low cash balance relative to debtors and liabilities to identify potential operational or financial constraints.
• Evaluate governance practices given the concentration of control in one individual.