Company Number: 13104236

Analysis Date: 2025-07-20 12:50 UTC

1. Risk Rating: LOW to MEDIUM
   The company shows positive net assets and modest net current assets, indicating solvency at the balance sheet date. However, current liabilities are close to current assets, and cash balances, while increased, remain modest. The company is small, with a single employee director, and unaudited abridged accounts limit transparency.

2. Key Concerns:

• Liquidity Cushion Is Thin: Current assets (£3,117) barely exceed current liabilities (£3,038) as of 2023 year-end, leaving a narrow net current asset margin (£79). This tight working capital position may constrain operational flexibility.
• Limited Scale and Human Resources: The company employs only one person (the director), which may pose operational risks related to capacity and sustainability.
• Lack of Audit and Limited Financial Detail: Accounts are unaudited abridged, reducing the level of assurance and detail available for analysis, and the Profit & Loss account is not filed, limiting insight into profitability and cash flow trends.

3. Positive Indicators:

• Improved Cash Position: Cash at bank increased significantly from £567 in 2022 to £2,718 in 2023, enhancing liquidity.
• Positive Net Assets and Shareholders’ Funds: The company maintains positive net assets (£445 in 2023), reflecting solvency and equity buffer.
• No Filing or Compliance Issues: Accounts and confirmation statements are filed on time, with no overdue filings or penalties noted.
• Stable Control and Governance: The director and PSC structure are clear, with no indications of director disqualifications or governance red flags.

4. Due Diligence Notes:

• Review Profit & Loss and Cash Flow: Obtain full financial statements or management accounts to assess profitability, revenue trends, and cash flow generation, which are currently unavailable.
• Assess Customer and Contract Concentration: Given the company’s small size and industry (IT consultancy and software), investigate client base diversity and contract stability.
• Evaluate Operational Dependencies: Understand risks related to the single employee/director model, including succession planning and key man risk.
• Confirm Contingent Liabilities or Off-Balance Sheet Items: Explore any potential liabilities or commitments not reflected in abridged accounts.
• Verify Fixed Asset Usage and Capital Expenditures: Given modest fixed assets (£366), understand asset utilization and investment needs for future growth.