Company Number: NI686538

Analysis Date: 2025-07-29 18:16 UTC

1. Risk Rating: LOW
   The company demonstrates a strong net asset position with substantial positive net current assets and net assets significantly exceeding current liabilities. There are no overdue filings, and the company status is active without any indication of insolvency or liquidation.

2. Key Concerns:

• Decline in Fixed Assets: Fixed assets decreased from £27,947 in 2023 to £11,333 in 2024, which could suggest asset disposals or depreciation outpacing reinvestment, warranting further inquiry.
• Employee Reduction: Average employee count dropped from 9 to 8, potentially indicating operational scaling down or efficiency measures that may affect future capacity.
• Concentration of Control: Mr Lee Austin holds 75-100% of shares and voting rights, which could imply governance risks if oversight is limited.

3. Positive Indicators:

• Strong Liquidity: Current assets of £647,364 against current liabilities of £352,232 result in a healthy net current asset position of £295,132, indicating good short-term liquidity.
• Increasing Net Assets: Net assets rose from £214,390 in 2023 to £306,465 in 2024, reflecting retained earnings or capital injections enhancing solvency.
• Timely Compliance: All statutory filings, including accounts and confirmation statements, are up to date with no overdue notices, demonstrating regulatory compliance and governance discipline.

4. Due Diligence Notes:

• Review Fixed Asset Movements: Investigate reasons behind the reduction in fixed assets and assess whether this impacts operational capability.
• Evaluate Cash Flow Trends: While current assets are strong, it is important to analyze cash flow statements if available to confirm sustainable liquidity beyond balance sheet snapshots.
• Governance Review: Given the high ownership concentration, verify the presence of adequate internal controls and any minority interests or external oversight mechanisms.
• Confirm Revenue and Profitability: As micro-entity accounts limit disclosure, seek supplementary financial data or management reports to assess ongoing operational performance and sustainability.