Company Number: 12641872

Analysis Date: 2025-07-20 13:02 UTC

1. Risk Rating: LOW
   The company demonstrates a stable financial position with positive net assets and net current assets throughout the reported years. There are no overdue filings or indications of insolvency or liquidation. The director's report and accounts comply with small companies regime requirements.

2. Key Concerns:

• Decreasing cash balance in the latest financial year (from £36,187 in 2024 to £21,139 in 2025), which may signal tighter liquidity.
• Director's current account shows an amount owed (£7,517), repayable on demand, which could impact short-term cash flow if called upon.
• The company operates with only one employee (the director), which may pose operational risks if dependence on key personnel is high.

3. Positive Indicators:

• Net current assets remain positive (£17,300 as at 31 March 2025), indicating the company can meet its short-term liabilities.
• Shareholders' funds have remained positive over the years, evidencing retained earnings and financial stability.
• No overdue accounts or confirmation statements; the company is compliant with statutory filing requirements.
• The company is active with a functioning website and valid VAT registration, supporting operational legitimacy.

4. Due Diligence Notes:

• Investigate the reasons behind the significant reduction in cash balance in the latest year and assess cash flow projections.
• Review the director's loan account arrangements to understand repayment terms and potential impact on liquidity.
• Assess business sustainability given the very small workforce and reliance on a single director.
• Confirm that reported debts and creditors, especially tax and social security obligations, are being managed appropriately.
• Verify the accuracy of the nationality information for the company secretary, as it is currently unknown.
• Review any related party transactions for compliance with market rates and governance standards.