Company Number: 13801093

Analysis Date: 2025-07-29 19:37 UTC

1. Risk Rating: MEDIUM
   The company shows a decline in net current assets turning negative in the latest year, indicating some liquidity pressure. While net assets remain positive, the reduction in working capital and long-term liabilities suggest moderate solvency risk that merits attention.

2. Key Concerns:

• Negative net current assets in 2024 (£-2,231) vs positive £16,230 in 2023, signaling potential short-term liquidity constraints.
• Reduction in net assets from £26,668 in 2023 to £20,128 in 2024, possibly reflecting operating losses or asset write-downs.
• Long-term liabilities still present (£6,915 in 2024), which reduces overall solvency buffer.

3. Positive Indicators:

• Company remains active with timely filing of accounts and confirmation statements, indicating regulatory compliance.
• Directors have significant ownership and control, aligning management incentives with business stability.
• Business operates in financial management (SIC 70221) with a focused service offering (Fractional CFO), potentially generating recurring revenue streams.
• Low employee count (2) keeps overheads minimal, which can aid flexibility.

4. Due Diligence Notes:

• Investigate reasons for sharp decline in current assets and net current assets between 2023 and 2024; review cash flow statements and debtor quality.
• Examine profit and loss details to confirm if net asset decrease is due to losses or other factors such as asset impairments or dividend payments.
• Review terms and maturity profile of long-term liabilities to assess refinancing or repayment risks.
• Confirm there are no director disqualifications or regulatory sanctions against the two directors.
• Assess the business model sustainability given small scale and micro-entity status, including client concentration risks and contract terms.