Company Number: 13147071

Analysis Date: 2025-07-20 15:40 UTC

1. Risk Rating: LOW to MEDIUM
   The company shows positive net current assets and net assets, indicating solvency at the balance sheet date. However, the declining net assets from £19,572 in 2024 to £9,683 in 2025 warrants monitoring. The micro-entity status reflects a small scale operation, which may imply limited financial resilience.

2. Key Concerns:

• Declining Net Assets: The net assets have halved year-on-year (2024 to 2025), potentially signaling pressure on retained earnings or increased liabilities.
• Modest Share Capital: Share capital is only £1.00, indicating minimal initial equity investment, which may impact the company’s ability to absorb losses.
• Concentration of Control: One individual controls 75-100% of shares and voting rights and can appoint/remove directors, presenting governance concentration risk.

3. Positive Indicators:

• Current Asset Coverage: Current assets exceed current liabilities with positive net current assets (£9,683 in 2025), suggesting the company can meet short-term obligations.
• Compliance: No overdue filings for accounts or confirmation statements, indicating good regulatory compliance.
• Employee Growth: Increase in average employees from 6 to 10 suggests operational expansion and potential revenue growth.

4. Due Diligence Notes:

• Review detailed profit and loss accounts to understand the cause of the net asset decline.
• Examine cash flow statements to assess liquidity trends and working capital management.
• Investigate the ownership and governance structure due to control concentration, including related party transactions if any.
• Confirm the nature and sustainability of revenue streams given the SIC codes spanning security, cleaning, and miscellaneous services.
• Verify the validity and activity of the website and customer engagement to assess market presence.