Company Number: 13790047

Analysis Date: 2025-07-20 17:49 UTC

1. Risk Rating: LOW
   The company demonstrates strong net current assets, positive net assets, and no overdue filings. The financial position appears robust with sufficient cash reserves and prudent control over liabilities.

2. Key Concerns:

• Declining trade debtors: Trade debtors decreased significantly from £76,200 (2023) to £24,000 (2024), which may indicate slower sales or changes in credit terms that require verification.
• Accumulated tax liabilities: The corporation tax and other taxation/social security liabilities remain material (£7,068 and £18,169 respectively), though they have decreased from prior year, monitoring timely settlement is important.
• Limited fixed assets base: Tangible fixed assets are minimal (£2,015) and declining, reflecting limited capital investment which could impact operational scalability or sustainability depending on business model.

3. Positive Indicators:

• Strong liquidity position: Cash at bank increased to £60,725 and net current assets improved to £89,725, highlighting good short-term financial health.
• Increasing net assets: Net assets rose from £77,447 (2023) to £91,740 (2024), indicating retained earnings growth and overall strengthening equity base.
• Compliance and governance: All statutory filings (accounts and confirmation statements) are up to date with no overdue status, reflecting good compliance discipline.

4. Due Diligence Notes:

• Investigate reasons behind the sharp decrease in trade debtors and assess collectability risks or shifts in revenue recognition practices.
• Confirm the company's capability and plans to meet ongoing corporation tax and social security obligations to avoid future liquidity strains.
• Review business model sustainability given low tangible asset investment and reliance on current assets; assess operational risk and growth strategy.
• Validate the impact of the newly appointed director (from Sept 2024) on governance and strategic direction.
• Assess the nature and timing of prepayments and accrued income (£32,124 in 2024) to understand revenue recognition and cash flow timing.