Company Number: 12667673

Analysis Date: 2025-07-20 14:49 UTC

1. Risk Rating: MEDIUM
   The company exhibits improving financial metrics but also carries significant non-current liabilities and director loans, which introduce moderate solvency and liquidity risks. The absence of an audit and limited disclosures warrant cautious evaluation.

2. Key Concerns:

• Increasing Long-Term Creditors: Creditors due after more than one year increased from £71k to £112k, indicating rising long-term liabilities that may pressure future cash flows.
• Director Loan Exposure: A substantial director loan of approximately £75k was outstanding during the year, which although reportedly repaid post-year-end, reflects reliance on related-party financing.
• Modest Equity Base & Small Share Capital: Share capital remains nominal (£1), with shareholders’ funds at £67k, which could limit financial resilience against unexpected downturns or obligations.

3. Positive Indicators:

• Improved Net Current Assets: Net current assets rose sharply from £9k to £75k, showing enhanced short-term liquidity and working capital management.
• Growing Tangible Assets: Fixed assets increased notably to £104k, suggesting investment in operational capacity.
• No Overdue Filings & Active Status: All statutory filings are timely with no overdue accounts or confirmation statements, indicating compliance with Companies House requirements.

4. Due Diligence Notes:

• Verify nature and repayment terms of non-current creditors to assess long-term solvency implications.
• Confirm current status and terms of director loans and any other related-party transactions.
• Review cash flow statements (not filed here) to evaluate operational cash generation and debt servicing capacity.
• Assess the reasonableness of asset valuation and impairment policy given significant fixed asset additions.
• Investigate impact of dividends paid (£55k) relative to profits and cash flow.