Company Number: 13032698

Analysis Date: 2025-07-29 13:42 UTC

1. Risk Rating: MEDIUM
   The company shows improving net current assets and shareholders’ funds over recent years, indicating progress toward financial stability. However, liquidity remains modest with relatively low cash balances and some reliance on receivables. The absence of an audit and limited disclosure typical of small companies somewhat limits transparency.

2. Key Concerns:

• Liquidity Position: Cash on hand is low (£9,666 at 2023 year-end) relative to current liabilities (£38,082), though mitigated by substantial trade debtors (£69,747). The company’s ability to convert debtors to cash timely is critical.
• Profitability and Operational Sustainability: While equity improved to £41,331 in 2023, the absence of profit and loss details limits assessment of earnings quality and operational profitability. The company has only four employees, which may constrain scalability.
• Governance and Transparency: The company is exempt from audit and has not included a profit and loss account in filings, reducing visibility into financial performance and risks. Directors are also shareholders with significant control, which may raise governance considerations.

3. Positive Indicators:

• Improved Financial Position: Net current assets increased substantially from £2,257 in 2022 to £41,331 in 2023, indicating stronger working capital management and financial health.
• No Overdue Filings: Accounts and confirmation statements are up to date, indicating compliance with regulatory filing requirements.
• Stable Directorship and Control: Directors have been consistent with no disqualifications noted, and ownership is clearly identified, simplifying accountability.

4. Due Diligence Notes:

• Review underlying revenue and expense trends to confirm profitability and cash flow sustainability, since profit and loss data is not disclosed.
• Assess debtor aging and collection processes to verify liquidity assumptions.
• Understand operational model and client contracts in the IT consultancy sector to evaluate growth prospects and risk exposure.
• Consider requesting management accounts or internal financial reports to supplement limited public disclosures.
• Verify any related party transactions or shareholder loans given significant owner control.