Company Number: 14252821

Analysis Date: 2025-07-20 14:11 UTC

1. Risk Rating: LOW
   The company demonstrates a solid liquidity position with net current assets exceeding current liabilities comfortably. There are no overdue filings, and the business appears operationally stable with consistent net asset growth. The small scale and exemption from audit are typical for a company of this size and do not raise immediate concerns.

2. Key Concerns:

• Limited size and scale: As a very small private limited company incorporated in 2022, its financial footprint is minimal, which may limit growth and exposure to market risks.
• Concentration risk: With only two employees and directors remunerated in a limited scope, dependence on key personnel is high.
• Taxation and social security liabilities represent the largest element of current liabilities (£19,599 of £19,793), warranting attention to ensure timely settlement and compliance.

3. Positive Indicators:

• Positive working capital and net assets: Current assets of £47,345 versus current liabilities of £19,793, resulting in net current assets of £27,552 and net assets of £27,784.
• Healthy cash balance of £37,136 supports liquidity and operational needs.
• No overdue statutory filings or accounts, indicating good regulatory compliance.
• Small companies regime compliance with exemption from audit is standard and appropriate.

4. Due Diligence Notes:

• Confirm the nature and timing of taxation and social security obligations to avoid cash flow shocks.
• Assess client concentration and revenue streams given the small scale and sector classification (SIC 74909 - other professional, scientific and technical activities).
• Review related party transactions and director remuneration structure for governance oversight.
• Understand the business model and scalability considering only two employees and a single director receiving remuneration.
• Verify insurance and contractual protections given the professional services nature of the business.