Company Number: 12952765

Analysis Date: 2025-07-20 14:10 UTC

1. Risk Rating: MEDIUM
   The company shows signs of financial fluctuation with a significant reduction in net assets from £1,334 in 2023 to £794 in 2024. While it remains solvent with positive net assets, the sharp decline and variation in current liabilities and assets warrant caution.

2. Key Concerns:

• Declining Net Assets: Net assets decreased by over 40% from 2023 to 2024, indicating potential erosion of equity and financial stability.
• Large Reduction in Current Assets and Liabilities: Current assets dropped from £11,736 in 2023 to £1,025 in 2024, while current liabilities decreased from £14,004 to £1,025. Such volatility suggests possible operational or cash flow challenges.
• Limited Financial Information and Small Scale: As a micro-entity with minimal fixed assets (£794) and only one employee, the scale of operations is very small, potentially limiting operational resilience and growth capacity.

3. Positive Indicators:

• Compliance and Filing Status: Accounts and confirmation statements are up to date with no overdue filings, reflecting good regulatory compliance.
• Active Company Status: The company is active and not in liquidation or administration, indicating ongoing operations.
• Positive Net Current Assets: Despite reductions, net current assets remain positive, supporting short-term liquidity to meet obligations.

4. Due Diligence Notes:

• Investigate reasons behind the significant decrease in current assets and liabilities between 2023 and 2024 to understand underlying business or accounting changes.
• Review cash flow statements or bank reconciliations (if available) to assess liquidity and operational cash management.
• Clarify the nature and valuation of fixed assets given their low value and minor changes.
• Confirm the level of business activity and revenue generation since turnover is not provided, which is critical for assessing operational sustainability.
• Review director backgrounds, particularly Mr. Michael O'Driscoll who holds significant control, for any past governance or compliance concerns.