Company Number: 13132116

Analysis Date: 2025-07-19 13:05 UTC

1. Risk Rating: MEDIUM
   Justification: The company remains active with timely filings and no overdue accounts or returns, which indicates compliance and basic operational continuity. However, the significant decline in net assets from £14,447 in 2023 to £2,370 in 2024 and a sharp reduction in net current assets signals increased financial strain. Although still positive, the erosion of equity and working capital could pose solvency concerns if the trend continues.

2. Key Concerns:

• Declining Net Assets: Net assets dropped by approximately 84% from £14,447 to £2,370 within one year, indicating potential losses or increased liabilities that diminish shareholder value.
• Reduced Net Current Assets: Net current assets fell from £32,465 to £8,038, suggesting tightening liquidity which could impact the company’s ability to meet short-term obligations.
• Decrease in Accruals and Long-Term Creditors: Although total liabilities decreased, this might reflect restructuring or delayed payments rather than improved financial health, warranting further investigation.

3. Positive Indicators:

• Compliance and Filing: All statutory filings (accounts and confirmation statements) are up to date with no overdue status, reflecting good regulatory compliance and governance.
• Positive Working Capital: Despite reductions, net current assets remain positive, indicating the company currently has more short-term assets than liabilities.
• Stable Fixed Assets: Fixed assets marginally increased, suggesting ongoing investment or asset retention supporting operations.

4. Due Diligence Notes:

• Examine Causes of Net Asset Decline: Review detailed P&L accounts and notes to understand what drove the significant reduction in net assets—whether due to operating losses, write-downs, or other factors.
• Assess Cash Flow Position: Investigate cash flow statements to confirm liquidity status beyond balance sheet snapshots, focusing on cash generation vs. operating expenses.
• Director and Management Review: Confirm the role and stability of key management, especially noting the recent director resignation in March 2023 and its impact on operational continuity.