Company Number: 14333991

Analysis Date: 2025-07-29 20:53 UTC

1. Risk Rating: MEDIUM
   The company shows moderate solvency with positive net assets and net current assets in the latest accounts, improving from a prior year negative working capital. However, cash reserves are low relative to current liabilities, and tax liabilities have emerged recently, warranting caution.

2. Key Concerns:

• Liquidity Risk: Cash on hand (£1,226) is minimal compared to current liabilities (£4,980), suggesting potential short-term cash flow strain.
• Tax Liabilities: The presence of a corporation tax creditor of £3,063 in 2024, not previously recorded, could indicate recent profitability or tax payment delays impacting liquidity.
• Limited Financial History: Having only two years of financial data since incorporation in 2022 limits trend analysis and confidence in operational stability.

3. Positive Indicators:

• Improved Working Capital: Net current assets improved from a deficit of £275 in 2023 to a positive £1,246 in 2024, indicating better short-term financial management.
• Positive Net Assets: Net assets more than tripled to £3,110 in 2024, reflecting growth in tangible assets and retained earnings.
• No Overdue Filings: All accounts and confirmation statements are filed on time, demonstrating compliance and governance diligence.

4. Due Diligence Notes:

• Investigate the nature and timing of the corporation tax liability and confirm the company’s tax payment history and future tax obligations.
• Review cash flow statements and banking arrangements to assess liquidity management and availability of credit facilities.
• Clarify revenue streams and profitability drivers given the SIC code "Other service activities not elsewhere classified," to understand business sustainability and market positioning.
• Confirm the director’s capacity given the sole director’s occupation outside typical business management and the company’s small scale.
• Verify stock valuation and turnover, as stock represents a significant proportion of current assets (£5,000 of £6,226).