Company Number: 12386101

Analysis Date: 2025-07-20 18:57 UTC

1. Risk Rating: MEDIUM
   The company shows a deterioration in net assets and net current assets from 2023 to 2024, indicating some weakening of financial position. However, it remains solvent with positive net assets and net current assets, suggesting it can currently meet its obligations.

2. Key Concerns:

• Significant increase in current liabilities from £3,630 in 2023 to £22,544 in 2024, causing a decline in net current assets from £19,695 to £12,478. This signals potential liquidity pressure.
• Overall net assets declined by approximately 40% (£18,015 to £10,868), which may reflect operational losses or increased liabilities.
• The company operates with only one employee (the director), which may raise questions about operational capacity and sustainability if business volumes increase.

3. Positive Indicators:

• The company is compliant with filing deadlines for accounts and confirmation statements, indicating sound regulatory adherence.
• Positive net current assets and net assets indicate solvency despite the decline noted.
• Share capital is minimal but consistent, and ownership/control is clearly established under a single director, which can simplify governance and decision-making.

4. Due Diligence Notes:

• Investigate the nature and causes of the increase in current liabilities in FY 2024, including payment terms with suppliers and potential short-term debts.
• Review income statement or profit and loss data (not provided) to understand profitability trends and impact on reserves.
• Assess business model sustainability given the micro-entity size and single employee structure, including customer concentration and supply chain risks.
• Confirm no undisclosed contingent liabilities or off-balance sheet obligations.
• Validate the director’s plans for addressing the reduced net assets and liquidity changes.