Company Number: 12755187

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

1. Risk Rating: MEDIUM
   The company is currently active and filing its accounts on time, which is positive. However, the relatively low net current assets and the significant amount of current liabilities clustered close to current assets create a moderate solvency risk. The presence of a large director loan (debtor) that is interest-free and without fixed repayment terms also adds to liquidity concerns.

2. Key Concerns:

• Liquidity Exposure: Current liabilities (£100,565) slightly exceed current assets (£107,457), leaving a narrow net working capital margin (£6,892). This tight buffer may strain the company’s ability to meet short-term obligations if cash inflows slow.
• Reliance on Director Loan: Other debtors include a £60,821 amount due from the director, interest-free and without fixed repayment terms, which reduces cash availability and may present repayment uncertainty.
• Small Scale and Single Employee: The company employs only one person (the director herself), which could create operational risk through dependence on a single individual and limit business scalability.

3. Positive Indicators:

• Timely Filing and Compliance: Accounts and confirmation statements are up to date with no overdue filings, indicating good regulatory compliance and governance discipline.
• Increasing Net Assets: Shareholders’ funds have increased from £4,410 in 2022 to £7,000 in 2023, showing some retained earnings growth.
• Positive Net Current Assets: Despite being narrow, net current assets remain positive and have increased year-on-year, reflecting some operational improvement.

4. Due Diligence Notes:

• Investigate the nature and recoverability of the director loan (£60,821), including the director’s financial position and plans for repayment.
• Review cash flow forecasts and working capital management practices to assess the company’s ability to meet short-term liabilities without resorting to additional borrowing.
• Confirm the sustainability of business operations given the sole employee structure and assess any dependency risks.
• Examine the company's client base, order book, and revenue streams to validate ongoing operational viability in the specialised design sector.
• Assess any contingent liabilities or off-balance-sheet risks not disclosed in the accounts.