Company Number: 13802673

Analysis Date: 2025-07-29 17:24 UTC

1. Risk Rating: MEDIUM
   The company shows a positive turnaround in net assets and working capital in 2023 compared to prior years, indicating improving financial health. However, the presence of finance lease liabilities and directors' loans, combined with modest cash reserves relative to current liabilities, suggests some liquidity and solvency risk remains.

2. Key Concerns:

• Liquidity Position: Cash at bank is £4,298 against current liabilities of £39,036 in 2023, which may create short-term cash flow pressure despite positive net current assets due to significant debtors and directors' loans.
• Dependence on Directors' Loans: The debtor balance includes a notable directors' loan account (£25,500 in 2023), which may indicate reliance on internal financing and potential related party risk.
• Lease Obligations: The company has significant finance lease liabilities (£7,561 current, £26,927 non-current) that could constrain cash flow and increase fixed financial obligations.

3. Positive Indicators:

• Improved Net Assets: Net assets increased substantially from £1,341 in 2022 to £20,421 in 2023, reflecting profitability or capital injection.
• Working Capital Improvement: Net current assets improved from a negative £6,850 in 2022 to a positive £15,763 in 2023, suggesting better short-term financial management.
• Consistent Filing and Compliance: All accounts and confirmation statements are up to date with no overdue filings, indicating good regulatory compliance.

4. Due Diligence Notes:

• Verify Directors’ Loans Terms and Repayment Plans: Clarify the nature, interest, and repayment schedules of directors' loans given their materiality and impact on liquidity.
• Assess Cash Flow Forecasts: Review internal cash flow projections to understand if current cash levels and debtor collections are sufficient to meet short-term obligations, especially lease payments.
• Examine Lease Agreements: Understand the terms of finance leases, including duration, interest rates, and potential impact on operational flexibility.