Company Number: 14262042

Analysis Date: 2025-07-29 14:57 UTC

1. Risk Rating: MEDIUM

Justification: The company is very young (incorporated mid-2022) and operates as a micro-entity with very limited financial disclosures. While it is currently active and not overdue on filings, the balance sheet shows modest shareholders’ funds and a notable increase in liabilities falling due after one year, which may present solvency concerns. The working capital position is positive but thin. The lack of an audit and limited operational history warrant a cautious stance.

2. Key Concerns:

• Long-Term Liabilities Growth: Creditors falling due after one year rose significantly from £441 in 2023 to £14,836 in 2024, suggesting increased long-term debt or obligations that could strain future cash flows.
• Low Shareholders’ Funds: Equity remains very small (£5,211 in 2024), reflecting limited capital base and possible vulnerability to losses or cash flow pressures.
• Limited Financial History and Scale: As a micro-entity with only 2 employees and limited turnover data, assessing operational stability and sustainability is difficult; the company may still be in early development phase without proven profitability.

3. Positive Indicators:

• Timely Compliance: No overdue accounts or confirmation statements, indicating good regulatory compliance and governance practices.
• Positive Net Current Assets: Current assets of £27,309 exceed current liabilities of £14,836, indicating short-term liquidity is adequate at the balance sheet date.
• Stable Management and Control: The two directors are also the principal shareholders, which may facilitate aligned decision-making and operational oversight.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term liabilities to understand repayment obligations and impact on cash flow.
• Request management commentary or forecasts to assess business model sustainability and expected revenue growth.
• Verify the absence of any director disqualification or regulatory issues beyond the public filing data.
• Confirm whether the company has any significant contracts or clients supporting ongoing operations, given its industry (public relations and communications).
• Review any related party transactions given the concentration of ownership and directorship within the Thomson family.