Company Number: 12642387

Analysis Date: 2025-07-20 14:58 UTC

1. Risk Rating: MEDIUM
   The company shows a significant decrease in net assets and net current assets over the latest year, indicating increased solvency and liquidity risk. However, it remains solvent with positive net assets and current assets exceeding current liabilities. The limited scale and small share capital also suggest vulnerability.

2. Key Concerns:

• Sharp decline in net assets from £14,052 in 2023 to £2,930 in 2024, primarily driven by a large reduction in debtors and current assets, raising concerns about revenue generation and cash flow.
• Increased corporation tax creditor (£3,788) which could pressure near-term liquidity.
• Reliance on director loans (£1,817) interest-free, which may indicate external funding constraints or cash flow shortfalls.

3. Positive Indicators:

• Current assets still exceed current liabilities by £2,790, indicating short-term liquidity remains positive.
• Consistent filing history with no overdue accounts or confirmation statements, suggesting good regulatory compliance.
• Directors have significant skin in the game with substantial control and active involvement, which can support operational stability.

4. Due Diligence Notes:

• Investigate the cause of the large drop in trade debtors from £14,432 to £763 and its impact on turnover and collections.
• Review the company's profit and loss account (not filed) to understand profitability trends and cash flow generation.
• Assess the sustainability of director loans and any repayment plans or potential calls on these funds.
• Evaluate the company's client base and contract stability given the nature of management consultancy and recent financial volatility.