Company Number: 13660766

Analysis Date: 2025-07-29 14:53 UTC

1. Risk Rating: MEDIUM
   The company shows a turnaround from significant current liabilities in 2023 to positive net current assets in 2024, indicating recent improvement in short-term solvency. However, the very low absolute asset base and limited financial data signal moderate risk.

2. Key Concerns:

• Volatile Working Capital: The company had a substantial current liabilities position (£12,373) in 2023 with minimal current assets (£130), implying severe liquidity constraints during that period.
• Limited Asset Base: No fixed assets and total net assets of only £2,215 as of 2024 suggest a fragile capital structure and minimal financial cushion.
• Concentration of Control: One individual holds 75-100% of shares and voting rights, which may pose governance risks, especially given the recent director change.

3. Positive Indicators:

• Recent Liquidity Improvement: Current assets increased to £5,770 and current liabilities reduced to £3,555 by 2024, producing positive net current assets of £2,215, a sign of improved operational liquidity.
• Compliance and Filing: No overdue accounts or confirmation statements; filings are up to date demonstrating regulatory compliance.
• Stable Employment: The average number of employees remained consistent at 3 over the last two years, indicating operational continuity.

4. Due Diligence Notes:

• Investigate the source and sustainability of the increase in current assets and reduction in liabilities between 2023 and 2024 to assess if this reflects genuine operational improvement or short-term adjustments.
• Review the nature of the company’s liabilities in prior years and any contingent liabilities or off-balance-sheet exposures.
• Clarify the impact of the director change in 2023 and assess governance practices given the high concentration of control and recent management transition.
• Explore the company’s business model under SIC codes 96090 and 69109 to understand revenue sources and operational risks.