Company Number: 13130004

Analysis Date: 2025-07-20 14:07 UTC

1. Risk Rating: LOW
   The company demonstrates a solid net asset position with positive net current assets that have increased significantly in the latest financial year. The filings are up to date, and there is no indication of insolvency or financial distress.

2. Key Concerns:

• Director Loans: A significant unsecured, interest-free loan to a director remains outstanding (£4,784 as of 31 January 2024). While common in small private companies, this could impact liquidity if not repaid.
• Low Fixed Assets: The company’s fixed asset base is minimal (£11 in 2024), which suggests limited tangible asset backing. This is typical for consultancy firms but should be noted for asset-backed lending considerations.
• Reliance on Two Directors: The company has only two directors who are also the main shareholders and key controllers. This concentration of control could pose governance risks or operational continuity concerns.

3. Positive Indicators:

• Strong Liquidity Position: Current assets of £6,184 against current liabilities of £1,253 yield net current assets of £4,931, indicating good short-term liquidity.
• Increasing Net Assets: Net assets rose from £783 in 2023 to £3,351 in 2024, reflecting growth and retained earnings accumulation.
• Compliance and Filing: Both accounts and confirmation statements are filed on time and there is no overdue status or indication of regulatory non-compliance.

4. Due Diligence Notes:

• Investigate the nature, terms, and recovery plan for the director loan to ensure it does not pose a liquidity risk.
• Review any contingent liabilities or off-balance sheet arrangements not disclosed in the micro-entity accounts.
• Confirm business model sustainability given the small scale and limited asset base, specifically the source of revenue and client concentration.
• Evaluate corporate governance practices given the concentration of ownership and control.