Company Number: 14597519

Analysis Date: 2025-07-29 12:57 UTC

1. Risk Rating: MEDIUM
   The company shows persistent net current liabilities across the last three reported years, indicating potential liquidity concerns. However, positive net assets and no overdue filings mitigate immediate solvency alarms.

2. Key Concerns:

• Negative Working Capital: Net current assets are negative at around -£11k for the latest year, suggesting the company may struggle to meet short-term obligations without additional cash inflows or financing.
• Declining Fixed Assets: Fixed assets decreased from £42.6k to £32k in the last year, which may indicate asset disposals or underinvestment; this requires understanding for operational sustainability.
• Small Scale and Limited Financial Data: As a micro-entity incorporated recently in 2023, the company has limited financial history, restricting trend analysis and increasing uncertainty.

3. Positive Indicators:

• Positive Net Assets and Shareholders’ Funds: Despite liquidity pressure, net assets remain positive above £16k, supported by equity capital from the single controlling shareholder.
• Timely Filings and Compliance: Accounts and confirmation statements are filed on time with no overdue status, reflecting good regulatory compliance and governance discipline.
• Stable Ownership and Directorship: The two directors are also the sole PSC with significant shareholding, implying aligned management and ownership, potentially facilitating quick decision making.

4. Due Diligence Notes:

• Investigate the nature of current liabilities and whether any are overdue or subject to renegotiation to understand short-term payment risks.
• Review cash flow forecasts or bank statements to assess the company’s liquidity management and ability to cover upcoming liabilities.
• Confirm reasons for fixed asset reduction and whether this impacts operational capacity or reflects strategic asset sales.
• Assess revenue streams, customer concentration, and contracts to judge operational sustainability given the limited employee base (2 employees).
• Verify no director disqualifications or adverse conduct records exist for the Donnison directors beyond the data provided.