Company Number: 13270056

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

1. Risk Rating: MEDIUM
   The company shows modest net assets with a negative net current asset position, indicating potential liquidity constraints. However, it remains solvent on a total assets less current liabilities basis and has filed all statutory returns on time without audit requirements, reflecting basic compliance.

2. Key Concerns:

• Negative net working capital: Current liabilities (£30,306) exceed current assets (£26,861) by £3,445 as of March 2024, which may impair short-term liquidity and ability to meet immediate obligations.
• Reliance on a single director and employee: The company operates with one person, which could pose operational risks and continuity challenges.
• Lack of audit and limited disclosures: As a small company exemption filer, absence of audited financials and limited profit & loss information restricts comprehensive assessment of profitability and cash flow stability.

3. Positive Indicators:

• Timely compliance: Accounts and confirmation statements are filed on time, suggesting good governance on statutory requirements.
• Improvement in net assets: Shareholders’ funds increased from £7,573 in 2023 to £11,561 in 2024, indicating some accumulation of retained earnings or capital injection.
• Presence of goodwill asset: £12,000 of intangible assets (goodwill) reflects some value in acquired business or IP, which may provide strategic advantage.

4. Due Diligence Notes:

• Verify cash flow and working capital cycles, particularly how the company manages to meet current liabilities given persistent negative net current assets.
• Investigate income streams, profitability, and future contracts to assess sustainability since profit and loss data are not publicly filed.
• Confirm the accuracy and recoverability of debtors (£16,140) and the nature of creditors, including taxation and social security liabilities which are significant.
• Understand the nature and amortisation of goodwill to evaluate potential impairment risks.
• Assess director’s plans for growth, staffing, and risk mitigation given single-person dependence.