Company Number: 13117519

Analysis Date: 2025-07-20 12:14 UTC

1. Risk Rating: LOW
   The company demonstrates improving net current assets and net asset position over the last few years, positive cash balances, and timely filing compliance. There are no indications of insolvency or liquidity distress.

2. Key Concerns:

• Moderate fixed asset depreciation: Tangible fixed assets decreased from £12,824 to £8,418 over the most recent year, which may warrant review of asset replacement or impairment risks.
• Concentration of creditors: A significant portion of current liabilities are classified as "Other creditors" (£36,972 of £41,921), which should be understood for terms and potential short-term refinancing risk.
• Minimal share capital (£10): While not unusual for a small private limited company, this offers limited equity buffer and could impact future capital raising or debt capacity.

3. Positive Indicators:

• Positive net current assets increasing from £5,420 (2024) to £14,033 (2025) reflecting improved working capital management.
• Strong cash position (£43,122) relative to current liabilities (£41,921), supporting liquidity and operational cash flow.
• Consistent filing of accounts and confirmation statements on time, indicating good regulatory compliance and governance.
• Growing shareholders' funds from £6,417 (2021) to £21,308 (2025), showing retained earnings accumulation and business growth.
• Stable small team (2 employees), which may help maintain operational control and reduce fixed overheads.

4. Due Diligence Notes:

• Verify the nature and payment terms of "Other creditors" to assess short-term obligations and potential cash flow risks.
• Investigate the causes for the decline in tangible fixed assets and whether asset replacement or impairments are planned.
• Review turnover and profitability trends (not provided) to confirm sustainable operational performance beyond balance sheet strength.
• Confirm whether goodwill amortization assumptions remain appropriate and if any impairment indicators exist.
• Assess the director’s business experience and any related party transactions given the single-director structure.
• Check for any contingent liabilities or off-balance sheet obligations not disclosed in the accounts.