Company Number: 13498080

Analysis Date: 2025-07-29 16:09 UTC

1. Risk Rating: LOW
   Martin Baker Auditing Services Ltd demonstrates a solid financial position for a micro-entity with positive net assets and no overdue filings. The company shows steady growth in net assets and maintains compliance with filing deadlines, indicating a stable operational footing.

2. Key Concerns:

• Modest scale and micro-entity status limits the detail and scope of financial disclosure, which constrains thorough risk assessment.
• Current liabilities increased notably in 2024 compared to 2023, which warrants monitoring to ensure obligations remain manageable.
• Limited employee base (2 employees including directors) may pose operational continuity risks if key personnel are unavailable.

3. Positive Indicators:

• The company has maintained timely filing of accounts and confirmation statements, reflecting good regulatory compliance.
• Net assets more than doubled from £34,477 in 2023 to £64,445 in 2024, suggesting improved financial strength and capital base.
• Positive net current assets of £24,034 as of 2024 indicate adequate short-term liquidity to meet immediate liabilities.
• Directors are both significant shareholders and actively involved in management, which may support aligned interests and oversight.

4. Due Diligence Notes:

• Review the nature and composition of current liabilities to identify any short-term financial pressures or contingent liabilities.
• Investigate revenue trends, profitability, and cash flow from operations which are not disclosed in micro-entity accounts but critical for assessing sustainability.
• Confirm whether the directors have any history of regulatory or financial issues, though none are indicated in available data.
• Understand client concentration and market positioning within the auditing sector to assess operational risks.