Company Number: 12388922

Analysis Date: 2025-07-20 18:45 UTC

1. Risk Rating: MEDIUM
   The company shows a declining net asset base and current assets year-over-year, with a significant reduction in cash reserves and net current assets. While it remains solvent and operational, these trends warrant caution.

2. Key Concerns:

• Declining Liquidity: Cash at bank dropped from £24,373 in 2023 to £9,144 in 2024, reducing the company's ability to meet short-term obligations.
• Reduced Net Current Assets: From £12,157 in 2023 to £3,307 in 2024, indicating tighter working capital and potential liquidity strain.
• Increasing Investment in Illiquid Assets: Introduction of £10,200 in investments in 2024 with no corresponding cash increase may tie up funds less readily available for operational needs.

3. Positive Indicators:

• Solvency Maintained: Net assets remain positive at £15,468 in 2024, indicating the company’s liabilities are covered by assets.
• No Filing or Compliance Issues: Accounts and confirmation statements are filed on time with no overdue filings, showing good regulatory compliance.
• Experienced Director and Clear Control: Single director and PSCs are transparent and stable, reducing governance risk.

4. Due Diligence Notes:

• Review the nature and liquidity of the £10,200 investment recorded in 2024 to assess potential impact on cash flow and asset realizability.
• Investigate reasons behind the significant cash reduction and declining net current assets, including any operational changes or extraordinary expenses.
• Assess ongoing business operations and revenue trends since limited financial data on turnover or profitability is provided.
• Confirm that the company can comfortably cover its current liabilities with available cash and near-cash assets in the short term.