Company Number: 13874002

Analysis Date: 2025-07-20 13:31 UTC

1. Risk Rating: MEDIUM
   The company has improved its net current assets and net assets significantly in the latest financial year, indicating some recovery. However, the small scale of operations, modest asset base, and prior year working capital deficits warrant a cautious stance.

2. Key Concerns:

• Liquidity Fluctuations: The company experienced negative net current assets in the prior two years, suggesting past liquidity pressures that could have impacted its ability to meet short-term obligations.
• Limited Scale and Resources: As a micro/small private company with only 2 employees and modest tangible assets (~£2k net book value), operational resilience may be limited.
• Concentration of Control: Single director and 75-100% shareholder control by one individual may increase governance risk and reduce oversight.

3. Positive Indicators:

• Improved Financial Position: The latest accounts show positive net current assets (£3,341) and net assets (£5,386), signaling better working capital management and retained earnings growth.
• No Overdue Filings: Accounts and confirmation statements are up to date, indicating compliance with statutory filing requirements.
• Clear Accounting Policies: The company applies FRS 102 small entity provisions and maintains transparent accounting notes, which supports reliability of reported figures.

4. Due Diligence Notes:

• Review detailed cash flow statements and creditor aging schedules to confirm liquidity improvement is sustainable and not reliant on timing or one-off transactions.
• Investigate the nature of trade debtors and the collectability risk, given they represent a significant part of current assets.
• Assess the business model and revenue streams underpinning turnover recognition, especially given the SIC code (Other human health activities) which can sometimes involve project-based or contract revenue.
• Confirm director’s background and any potential related party transactions, considering sole control and shareholding.