Company Number: 13952510

Analysis Date: 2025-07-20 14:58 UTC

1. Risk Rating: MEDIUM
   Justification: The company is very young (incorporated 2022) and currently classified as a micro entity. The latest accounts show a deterioration in net current assets from a positive £1,757 in 2023 to a negative £621 in 2024, indicating potential liquidity pressure. However, net assets remain positive at £2,019, implying solvency is not immediately compromised. The lack of overdue filings is a good compliance indicator.

2. Key Concerns:

• Liquidity decline: Negative net current assets at 31 March 2024 suggest working capital constraints and potential cash flow risks.
• Limited financial transparency: As a micro entity filing filleted accounts, detailed profit and loss information is unavailable, restricting deeper financial analysis.
• Ownership and control concentration: Two directors appear to have overlapping 75-100% share ownership/control claims, which should be clarified to assess governance and control risks.

3. Positive Indicators:

• Compliance: All statutory accounts and confirmation statements are filed on time with no overdue filings.
• Positive net assets: Despite liquidity issues, the company maintains positive net assets and shareholders’ funds.
• Small, manageable scale: As a micro entity with only 2 employees, operational complexity is low, which may aid in agility and cost control.

4. Due Diligence Notes:

• Clarify ownership structure and shareholding percentages to resolve apparent control overlaps between the two PSCs.
• Investigate cash flow management and reasons for decline in current assets and increase in current liabilities during the latest financial year.
• Review any available internal management accounts or forecasts to assess operational sustainability beyond the limited statutory accounts data.
• Confirm no pending or contingent liabilities that may impact solvency, given the tight liquidity position.