Company Number: 14027461

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

1. Risk Rating: LOW

The company exhibits a sound financial position with net assets significantly exceeding current liabilities, indicating solvency. Its micro-entity status and compliance with filing deadlines reduce regulatory risk. The stable employee count and asset growth suggest operational stability.

2. Key Concerns:

• Limited Financial History: With incorporation in 2022, only two full years of financial data are available, limiting trend analysis.
• Small Scale of Operations: Being a micro-entity with only two employees and modest asset base may restrict resilience to market shocks.
• Director Concentration: Single individual ownership and control could lead to governance risks without independent oversight.

3. Positive Indicators:

• Positive Net Current Assets: Current assets exceed current liabilities, indicating adequate short-term liquidity.
• Increasing Fixed Assets and Shareholders’ Funds: Growth from £13,500 to £28,900 in fixed assets and from £18,814 to £34,998 in equity over one year shows investment and retained earnings.
• Compliance: Up-to-date filings (accounts and confirmation statement) with no overdue returns or accounts.
• No Indications of Insolvency or Liquidation: Company status is active without signs of financial distress or regulatory non-compliance.

4. Due Diligence Notes:

• Verify nature and valuation of fixed assets to confirm they are productive and not obsolete.
• Assess cash flow statements and profit/loss data (not provided) to confirm operational profitability and cash generation.
• Review director’s background and governance practices to mitigate risks associated with single-person control.
• Monitor ongoing filing compliance given the company’s recent formation and growth phase.