Company Number: 12685271

Analysis Date: 2025-07-20 15:47 UTC

1. Risk Rating: LOW
   The company appears financially stable with modest net current assets and positive shareholders’ funds over recent years. There are no overdue filings or indications of insolvency or liquidation.

2. Key Concerns:

• Limited scale and resources: As a micro-entity with minimal share capital (£100) and small current assets (£4,216 as of 2024), the company may have limited capacity to absorb shocks or fund growth.
• Declining current assets: Current assets decreased from £7,221 in 2023 to £4,216 in 2024, warranting monitoring of liquidity trends.
• Narrow shareholder base: Control is split between two individuals with 25-50% ownership each, which may present governance risks if disagreements arise.

3. Positive Indicators:

• Positive net current assets and shareholder funds maintained consistently over multiple years indicate solvency.
• No overdue accounts or confirmation statements, suggesting good regulatory compliance and governance discipline.
• Stable employment level (2 employees) appropriate for micro-entity size, indicating operational consistency.

4. Due Diligence Notes:

• Review detailed cash flow and profit and loss information (not currently filed) to assess operational profitability and cash generation.
• Confirm absence of contingent liabilities or off-balance sheet obligations that might affect solvency.
• Understand client concentration and contract stability given the consultancy nature of the business.
• Verify director backgrounds and related party transactions for any potential conflicts of interest or governance issues.