Company Number: NI669739

Analysis Date: 2025-07-29 16:36 UTC

1. Risk Rating: LOW
   The company demonstrates modest but consistent net current assets and positive net assets over the past three years, indicating an ability to meet short-term obligations. There are no overdue filings or indications of insolvency.

2. Key Concerns:

• Limited Share Capital: The nominal share capital is only £4, which may suggest minimal equity buffer relative to liabilities.
• Narrow Net Asset Base: Total net assets stand at £32,096 as of April 2024, modest for sustaining operational growth or absorbing shocks.
• Concentrated Control: Ownership and control are concentrated among three individuals, which may pose governance risks if not well managed.

3. Positive Indicators:

• Positive Working Capital: Net current assets improved from £3,142 in 2021 to £32,096 in 2024, indicating improved liquidity.
• Timely Compliance: No overdue accounts or confirmation statements, demonstrating good regulatory compliance.
• Going Concern Affirmed: Directors explicitly state confidence in continued operations supported by sales growth and profitability.
• Stable Workforce: Employee count steady at 3, consistent with micro-entity status and manageable overheads.

4. Due Diligence Notes:

• Review detailed profit and loss data (not provided) to confirm profitability trends referenced by directors.
• Investigate nature and duration of trade creditors (£291K) to assess payment terms and cash flow risk.
• Examine related party transactions given significant control by a small group.
• Confirm absence of contingent liabilities or off-balance sheet risks.
• Verify management capability given concentrated ownership and small team size.