Company Number: 14174691

Analysis Date: 2025-07-29 15:15 UTC

1. Risk Rating: MEDIUM
   The company shows a significant decline in net current assets from a positive £4,424 in 2023 to a negative £1,592 in 2024, indicating liquidity pressures. While the company remains solvent on a total asset less current liabilities basis (£1,502), the working capital deficit is a cautionary signal. The micro-entity status and limited financial disclosures restrict a full assessment, but the financial trends suggest moderate risk.

2. Key Concerns:

• Negative net current assets in the latest year, which may impair the company's ability to meet short-term obligations.
• Significant reduction in shareholders' funds from £8,549 to £1,502 within one year, suggesting possible operational losses or capital withdrawals.
• Very limited scale of operations (average 1 employee), which may imply operational vulnerability and limited capacity to absorb financial shocks.

3. Positive Indicators:

• Company is active and compliant with filing deadlines, with no overdue accounts or confirmation statements reported.
• No indication of insolvency proceedings such as liquidation or administration.
• Fixed assets remain consistent, indicating some level of capital investment retained.

4. Due Diligence Notes:

• Investigate the causes of the sharp decline in net current assets and shareholders’ funds between 2023 and 2024, including profitability and cash flow performance.
• Review any related party transactions or capital changes that might explain equity reduction.
• Assess the company's revenue streams, client base, and contracts to understand operational sustainability given the small workforce.
• Confirm if management has plans or resources to improve liquidity and operational stability.
• Verify if there are any contingencies or off-balance sheet liabilities not disclosed due to micro-entity reporting exemptions.