Company Number: 12688055

Analysis Date: 2025-07-29 16:28 UTC

1. Risk Rating: MEDIUM
   The company shows positive net assets and net current assets in the latest accounts, but there has been a significant reduction in current assets and shareholders' funds compared to the prior year. The micro-entity status limits detailed financial disclosures, and the absence of profit and loss information restricts full assessment of operational performance.

2. Key Concerns:

• Declining Financial Position: Current assets dropped from £97,572 in 2023 to £40,133 in 2024, and shareholders' funds fell from £16,762 to £9,415, indicating potential liquidity pressure or reduced profitability.
• Limited Financial Transparency: As a micro-entity, the company files abridged accounts without a profit and loss account, limiting insight into earnings, cash flow, and expense management.
• Recent Director Changes: The resignation of a director in May 2025 and appointment of a new director shortly before may impact governance stability; the new director’s experience and continuity should be confirmed.

3. Positive Indicators:

• Positive Net Current Assets: The company maintains positive working capital (£6,690 at 2024 year-end), suggesting ability to meet short-term obligations.
• Compliance with Filing Deadlines: No overdue accounts or confirmation statements were noted, indicating good regulatory compliance and governance discipline.
• Increasing Workforce: An increase in average employee headcount from 4 (2023) to 5 (2024) may indicate business growth or expanding operations.

4. Due Diligence Notes:

• Obtain management accounts or internal financial reports to assess profitability, cash flows, and reasons behind the notable decline in current assets and equity.
• Review the background, qualifications, and role of the newly appointed director to evaluate impact on operational and strategic stability.
• Confirm details of shareholder agreements and control structures, particularly given two individuals hold between 25-50% shareholdings and voting rights, to understand governance dynamics.