Company Number: 13992133

Analysis Date: 2025-07-20 18:15 UTC

1. Risk Rating: MEDIUM
   Justification: The company is active with recent accounts filed, showing positive net current assets and net equity, but the scale of operations and financial buffer are very small. There is an overdue accounts filing noted, which may indicate some minor compliance risk. The company’s financial position is fragile with low cash reserves and current liabilities close to current assets, which suggests moderate liquidity risk.

2. Key Concerns:

• Overdue accounts filing for the 2023 period (due 2025-06-30 but marked as overdue), indicating potential compliance or administrative weaknesses.
• Limited cash resources (£8,990) compared to creditors due within one year (£26,690), raising liquidity concerns if receivables are not promptly collected.
• Small net asset base (£1,380) with minimal equity (£1,280 retained earnings), which limits the company’s ability to absorb financial shocks or fund significant growth.

3. Positive Indicators:

• The company has improved net current assets from £100 in 2022 to £1,380 in 2023, showing some operational progress.
• Presence of trade debtors (£19,080) suggests ongoing business activity and revenue generation.
• Directors are actively engaged with clear control structure and no adverse records reported, supporting governance stability.

4. Due Diligence Notes:

• Confirm the reason for the overdue accounts filing and assess if there are any penalties or enforcement actions pending.
• Review the age and collectability of trade debtors to evaluate liquidity risk more precisely.
• Examine cash flow statements or internal management accounts (if available) to ascertain ongoing operational cash sufficiency.
• Investigate details of accruals and deferred income (£15,500) to understand potential obligations or revenue recognition timing.
• Verify any contingent liabilities or off-balance sheet risks not disclosed in the financial statements.