Company Number: 12614210

Analysis Date: 2025-07-29 13:13 UTC

1. Risk Rating: LOW
   The company demonstrates modest but positive net current assets and shareholders' funds, with no overdue filings and an active status. Current liabilities remain low relative to current assets, indicating an ability to meet short-term obligations.

2. Key Concerns:

• Decline in total assets and shareholders' funds from £6,370 (2023) to £5,390 (2024), indicating a potential reduction in retained earnings or profitability.
• Complete disposal of tangible fixed assets during the latest period may impact operational capacity or signal a shift in business model that requires scrutiny.
• Absence of trade debtors in the latest year (2024) compared to prior years may indicate reduced sales on credit or changes in revenue recognition that should be clarified.

3. Positive Indicators:

• The company maintains positive net current assets (£5,390) and positive shareholder funds (£5,390), suggesting balance sheet stability.
• No overdue accounts or confirmation statement filings, reflecting good regulatory compliance.
• Majority ownership and control by a single director (Mrs Courtney Bate) with clear accountability and no indication of director disqualifications.

4. Due Diligence Notes:

• Review the cause of decline in net assets and retained earnings to understand profitability trends and any exceptional items.
• Understand the business rationale behind the disposal of all tangible fixed assets and evaluate the impact on operations and future capital expenditure needs.
• Investigate the absence of trade debtors in the latest period to confirm revenue streams and credit policies.
• Confirm the business model and client base remain sustainable given the SIC code 73110 (advertising agencies) and the relatively low asset base.
• Verify cash flow sufficiency given modest cash balances and low current liabilities.