Company Number: 13438228

Analysis Date: 2025-07-20 17:25 UTC

1. Risk Rating: LOW

The company exhibits a stable financial position with positive net assets and net current assets, no overdue filings, and continued operations since incorporation in 2021. There is no indication of insolvency or liquidation risk in the latest financial statements.

2. Key Concerns:

• The company carries a moderate level of bank loan debt (£19,372), which has decreased from the previous year but still represents a future obligation. Monitoring repayment capacity is important.
• Trade debtors have decreased notably (£8,220 in 2024 vs. £12,412 in 2023), which could indicate slower sales or collection issues that warrant review.
• The company reports corporation tax and VAT liabilities that are material in size relative to cash balances, which may impact short-term liquidity if not managed carefully.

3. Positive Indicators:

• Net current assets and net assets have increased year on year, from £30,923 net assets at incorporation to £61,919 in 2024, showing growth and retained earnings.
• Cash balances have increased slightly to £20,404, supporting operational liquidity.
• No overdue filings or compliance issues are noted; confirmation statements and accounts are up to date.
• The company benefits from exemption from audit under small companies regime, indicating manageable scale and complexity.

4. Due Diligence Notes:

• Confirm the nature and terms of the bank loan to assess refinancing risk and repayment schedule.
• Investigate the reason for the reduction in trade debtors and whether it reflects business performance or credit control issues.
• Review cash flow statements (not provided) to evaluate operational cash generation and timing risks related to tax and VAT payments.
• Assess the impact of the company’s SIC codes (real estate trading and retail sale) on revenue diversification and market risks.
• Verify director credit and governance practices given that only one director is registered.