Company Number: 13004438

Analysis Date: 2025-07-20 16:07 UTC

1. Risk Rating: LOW
   The company exhibits a stable financial position for a micro-entity with modest but positive net assets and net current assets. No overdue filings or compliance issues are noted, and the sole director is also the controlling shareholder, suggesting straightforward governance.

2. Key Concerns:

• Limited scale of operations: With only one employee and micro-entity classification, operational capacity and revenue potential are restricted.
• Minimal current assets: Although improved from prior years, current assets remain low (£151), which may limit liquidity buffers in case of unexpected expenses.
• Concentrated control: The single director owns 75-100% of shares and voting rights; this concentration can pose governance risks if not managed carefully.

3. Positive Indicators:

• Consistent positive net assets increasing year over year (£638 in 2022 to £956 in 2023), indicating retained earnings or asset growth.
• No overdue statutory filings, showing compliance with Companies House requirements.
• No indication of financial distress or insolvency processes; company remains active and solvent with a positive working capital position.

4. Due Diligence Notes:

• Review detailed profit & loss accounts and cash flow statements (not provided) to assess revenue trends and operational cash flows.
• Investigate client base and contract stability given the company’s small size and sole employee to evaluate sustainability.
• Confirm no undisclosed liabilities or contingent risks that might impact solvency beyond the balance sheet figures.
• Assess director’s background for expertise and any external risks considering sole control.