Company Number: 13572829

Analysis Date: 2025-07-20 15:37 UTC

1. Risk Rating: MEDIUM
   Justification: The company shows positive net current assets and net assets with a reasonable cash balance relative to liabilities. However, the decreasing current assets and cash over recent years, coupled with no employees reported, suggests potential operational risks and limited scale. The company is relatively new, with only a few years of financial data, which limits the assessment of longer-term stability.

2. Key Concerns:

• Declining cash reserves: Cash at bank decreased from £1.13M in 2021 to £322K in 2024, which may indicate cash burn or increased outflows that need monitoring.
• No employees reported: The absence of staff raises questions about how the company delivers its services and whether it relies heavily on contractors or outsourcing, which could affect sustainability and control.
• High current liabilities relative to current assets: While net current assets remain positive, current liabilities remain substantial, and the margin is relatively thin, potentially creating liquidity risk if cash inflows slow.

3. Positive Indicators:

• Positive net current assets and shareholders' funds: The company maintains a positive working capital position and equity, which supports its solvency.
• Up to date statutory filings: No overdue accounts or confirmation statements, indicating good regulatory compliance and governance.
• Industry classification (IT consultancy): The sector generally has low fixed asset requirements and potentially scalable revenue models that can be less capital intensive.

4. Due Diligence Notes:

• Investigate cash flow trends and sources of cash outflow to understand whether the declining cash balance is due to investment, operational losses, or other factors.
• Clarify the operational model given zero employees reported—understand reliance on contractors and associated risks.
• Review contracts and debtor quality to assess revenue sustainability, given relatively low debtor balances.
• Confirm any off-balance sheet liabilities or financial commitments not captured in the accounts.
• Review management and director background, especially given the company's short operating history, to assess governance and operational expertise.