Company Number: 13034253

Analysis Date: 2025-07-20 11:54 UTC

1. Risk Rating: MEDIUM

The company is currently active and filing on time, which is positive. However, the very low net asset base (£79 as of 2023) and minimal equity signal limited financial buffers. The micro-entity scale, combined with low fixed assets and marginal net current assets, suggests constrained financial resilience that could impact solvency and liquidity under stress.

2. Key Concerns:

• Thin Capitalisation: Shareholders' funds stand at just £79 with net assets barely positive, indicating minimal equity to absorb losses or support growth.
• Working Capital Margins: Net current assets have declined from £1,663 in 2022 to £1,043 in 2023, showing a tightening liquidity position despite a reduction in liabilities.
• Director Advances: Outstanding advances to two directors totaling £9,700 (combined £4,850 each) at year-end may represent related party exposures and cash flow dependencies.

3. Positive Indicators:

• Timely Filings: No overdue accounts or confirmation statements; filings are up to date and compliant.
• Stable Operations: The company has been operating since late 2020 without signs of administration or liquidation.
• Industry Diversity: Engaged in specialised design and real estate management activities, potentially benefiting from multiple revenue streams.
• No Audit Exemption Compliance Issues: The company appropriately claims audit exemption under micro-entity rules and has directors’ reports consistent with statutory requirements.

4. Due Diligence Notes:

• Verify the nature and repayment terms of directors’ advances to assess potential liquidity strain or conflicts of interest.
• Investigate revenue and profitability trends (not disclosed in available micro-entity filings) to confirm operational sustainability.
• Review cash flow statements or bank reconciliations if available to better understand liquidity dynamics.
• Examine any contingent liabilities or off-balance-sheet risks not captured in the minimal fixed and current asset disclosures.
• Confirm the robustness of internal controls and governance given the small scale and director-related financial transactions.