Company Number: 13270832

Analysis Date: 2025-07-20 17:36 UTC

1. Risk Rating: MEDIUM
   The company shows modest shareholders’ funds and tangible fixed assets but exhibits negative net current assets (working capital deficit) for the last two years, indicating a liquidity risk. However, it is current with its filings and not in liquidation, which lowers immediate solvency concerns.

2. Key Concerns:

• Negative net current assets: The company had net current liabilities of £3,590 as of 31 March 2024, worsening from a near-neutral position the prior year, indicating potential short-term liquidity strain.
• Small cash buffer relative to current liabilities: Cash balances of £53,134 are slightly below current liabilities of £56,724, which could impact the company’s ability to meet immediate obligations.
• Limited equity and a single shareholder/director: Share capital is nominal (£1), with one individual controlling 100% of shares and voting rights, which could pose governance and operational dependency risks.

3. Positive Indicators:

• Up-to-date statutory compliance: The company is active, not overdue on accounts or confirmation statement filings, and not under any insolvency proceedings.
• Tangible fixed assets: Net book value of £19,856 provides some asset backing beyond cash/liabilities.
• Stable shareholder funds: Despite some decline, shareholders’ funds remain positive at £16,266, suggesting retained earnings and assets exceed liabilities overall.

4. Due Diligence Notes:

• Review cash flow statements or bank statements to assess liquidity cycles and whether current liabilities are routinely met on time.
• Investigate the nature and terms of the company’s creditors and other short-term obligations to understand payment pressures.
• Examine the company’s business model and revenue streams, given its SIC codes include artistic creation and IT consultancy, to evaluate operational sustainability and diversification.
• Assess any related party transactions given the sole director/shareholder structure and whether adequate controls exist.
• Confirm absence of director disqualification or regulatory issues beyond Companies House filings.