Company Number: 13791935

Analysis Date: 2025-07-20 17:27 UTC

1. Risk Rating: LOW
   The company demonstrates positive net current assets and increasing shareholders' funds with no overdue filings. It shows a stable liquidity position and no signs of insolvency.

2. Key Concerns:

• Reliance on a single director and sole shareholder may pose governance and operational continuity risks.
• Absence of trade debtors in 2023 could indicate a change in revenue recognition or customer payment patterns that warrants clarification.
• Corporation tax creditor remains significant (£20,042 at 2023 year-end), which could impact cash flow depending on payment terms and future profitability.

3. Positive Indicators:

• Positive net current assets improving from £5,363 in 2022 to £15,686 in 2023, indicating better short-term financial health.
• Cash reserves increased from £23,591 in 2022 to £40,706 in 2023, enhancing liquidity.
• No overdue accounts or confirmation statements, demonstrating compliance with regulatory filing requirements.
• Company is classified as a small entity with simplified accounting, appropriate for its size and stage.
• Operating in specialised design and research activities, likely knowledge-driven with potentially lower capital intensity.

4. Due Diligence Notes:

• Investigate the reason for the absence of trade debtors in 2023 compared to prior year and confirm revenue recognition practices.
• Assess the sustainability of cash flow and ability to settle corporation tax liabilities in a timely manner.
• Evaluate the operational dependency on the single director and shareholder, including succession planning and risk mitigation.
• Confirm that the filleted accounts sufficiently reflect all material risks given the exemption from audit.
• Review any contingent liabilities or off-balance sheet commitments not captured in the filleted accounts.