Company Number: 13640242

Analysis Date: 2025-07-29 13:41 UTC

1. Risk Rating: MEDIUM
   While the company is solvent with positive net assets and net current assets, a notable decline in current assets and net assets between 2023 and 2024 raises some concerns regarding liquidity and operational stability in the most recent year.

2. Key Concerns:

• Declining Liquidity: Current assets dropped significantly from £45,085 in 2023 to £16,291 in 2024, reducing net current assets from £14,168 to £4,910, which could indicate cash flow pressures.
• Reduced Net Assets: Net assets decreased from £18,740 in 2023 to £10,115 in 2024, suggesting possible erosion of the equity base or losses not explicitly detailed here.
• Limited Financial Disclosure: As a micro-entity, the company benefits from minimal filing requirements and exemption from audit, resulting in limited financial transparency which may mask underlying risks.

3. Positive Indicators:

• Solvency Maintained: The company holds positive net assets and net current assets in all reported years, indicating it can meet its short-term and long-term obligations.
• Compliance with Filings: The company is active with accounts and confirmation statements filed on time, indicating good regulatory compliance and governance.
• Stable Employment: The average number of employees remained stable at 7, suggesting operational continuity without significant downsizing.

4. Due Diligence Notes:

• Investigate the reason behind the sharp reduction in current assets and net assets in the 2024 financial year—whether it is due to increased liabilities, asset write-downs, or reduced cash balances.
• Review the profit and loss account or management accounts, if available, to assess profitability trends and cash flow generation.
• Confirm if there are any contingent liabilities, related party transactions, or off-balance-sheet exposures not disclosed in the micro-entity accounts.
• Verify the financial health and reputation of the directors, Wendy and Katie Butterfield, given their controlling shareholdings and management roles.