Company Number: 13042250

Analysis Date: 2025-07-19 12:43 UTC

1. Risk Rating: HIGH
   The company demonstrates significant deterioration in financial position over the past year, with net current assets declining from £3,601 in 2023 to only £351 in 2024, and net assets falling sharply from £2,838 to £352. Current liabilities have nearly tripled, suggesting increased short-term obligations that the company may struggle to meet with its limited current assets.

2. Key Concerns:

• Liquidity Risk: The current assets of £613 are substantially lower than current liabilities of £2,701 as at 31 March 2024, indicating potential cash flow difficulties.
• Declining Net Assets and Working Capital: The net assets have decreased by approximately 87.6% year-on-year, which may threaten solvency if the trend continues.
• No Employees Reported: The accounts report zero employees on average, which raises questions about operational capacity and sustainability of the business model, especially given the industry classification in residential care and nursing services which typically require staffing.

3. Positive Indicators:

• Compliance with Filing Requirements: The company is current with both accounts and confirmation statement filings, indicating adherence to regulatory obligations.
• Director Continuity: The sole director, Michelle Kamau, has maintained the position since incorporation, suggesting stable leadership.
• Micro Entity Filing Exemption Utilized: Use of micro-entity accounting provisions reduces complexity and cost of compliance.

4. Due Diligence Notes:

• Investigate the reasons behind the sharp increase in current liabilities and reduction in current assets during the 2023-2024 financial year.
• Review cash flow statements and bank reconciliations to assess liquidity management and immediate solvency risks.
• Clarify operational status given zero employees reported, including whether services are delivered through contractors or external arrangements.
• Examine any related party transactions or director loans that could impact financial stability.
• Confirm whether the company is actively trading given the low asset base and lack of recorded employees.