Company Number: 13739225

Analysis Date: 2025-07-29 13:53 UTC

1. Risk Rating: MEDIUM
   The company shows some stability in shareholder funds but a sharp reduction in current assets and net current assets from 2022 to 2023 raises concerns about liquidity and short-term solvency.

2. Key Concerns:

• Liquidity Decline: Current assets dropped drastically from £124,869 in 2022 to £6,675 in 2023, while current liabilities, though reduced, remain significant at £7,200. This results in a negative net current assets position in 2023 (-£525), indicating potential cash flow pressure.
• Sharp Reduction in Balance Sheet Size: Total assets less current liabilities fell from £125,861 in 2022 to £2,947 in 2023, a substantial contraction that may indicate operational scale back, asset disposals, or other financial stress.
• No Employees Reported: The company reports zero employees, which raises questions about operational capacity and sustainability if the company is actively trading in insurance auxiliary activities.

3. Positive Indicators:

• Shareholder Support: The sole director and 100% shareholder, Mr David Ratledge, continues to maintain equity in the company, with shareholder funds increasing from £696 in 2022 to £2,467 in 2023, indicating some capital injection or retained earnings.
• Compliance: The company remains active with no overdue filings for accounts or confirmation statements, demonstrating regulatory compliance and good governance practices.
• Micro-Entity Status: The small scale and micro-entity accounting suggest low operational complexity and potentially limited financial risk exposure.

4. Due Diligence Notes:

• Investigate the nature and reason for the significant reduction in current assets and liabilities between 2022 and 2023 to assess whether this reflects asset sales, debt repayments, or other financial restructuring.
• Clarify the company's operational status and business activities given the absence of employees and the small asset base, to confirm sustainability of the business model.
• Review cash flow statements and bank balances to evaluate liquidity more precisely and confirm ability to meet short-term obligations.
• Confirm the director’s plans and financial backing given the micro-sized scale and lack of external investors or PSCs.