Company Number: 13519058

Analysis Date: 2025-07-20 11:42 UTC

1. Risk Rating: LOW
   The company demonstrates solid net current assets and shareholder funds relative to its liabilities, with no overdue filings or indications of distress. The financial position appears stable, with increasing net assets and cash balances over the last two years.

2. Key Concerns:

• Declining employee count from 10 to 3 in one year could suggest operational downsizing or restructuring, which requires context to assess sustainability.
• Trade creditors have nearly tripled year-on-year (£7.4k to £21.6k), signaling possible payment delays or increased short-term obligations.
• Significant debtor balance (£27.6k) classified as "other debtors" without further detail may warrant scrutiny to confirm collectability and impact on liquidity.

3. Positive Indicators:

• Net current assets nearly doubled from £30.9k to £59k, showing improved working capital management.
• Cash reserves increased by approximately £15k to £73k, indicating healthy liquidity to meet short-term obligations.
• No overdue accounts or confirmation statements, demonstrating compliance with Companies House filing requirements.
• Shareholders' funds increased in line with net assets, reflecting retained earnings growth and no apparent equity erosion.

4. Due Diligence Notes:

• Investigate the nature and ageing of "other debtors" to evaluate collectability risk and impact on cash flow.
• Understand the reason behind the rise in trade creditors and whether it reflects extended credit terms or cash flow pressures.
• Clarify the cause of the significant reduction in employee numbers and its effect on business operations and revenue generation.
• Review turnover and profitability figures not disclosed in the current data to assess operational sustainability and growth trajectory.
• Confirm director backgrounds and any related party transactions given the significant control held by two directors.