Company Number: 12951415

Analysis Date: 2025-07-20 14:28 UTC

1. Risk Rating: MEDIUM
   Justification: The company is currently active and solvent with positive net assets and working capital. However, there is a significant decline in cash reserves in the most recent year, and the presence of a non-current liability introduces some financial risk. The company operates in a service sector with modest scale and limited financial disclosure, which warrants a cautious stance.

2. Key Concerns:

• Liquidity Decline: Cash at bank reduced dramatically from £25,921 in 2022 to £6,313 in 2023 despite stable net assets, indicating potential cash flow constraints.
• Non-Current Liabilities: Introduction of a £2,000 creditor due after one year in 2023, which was absent in previous years, may signal emerging financial obligations that need monitoring.
• Limited Scale and Disclosure: As a small private company with exemption from audit and abridged accounts, financial transparency is limited, elevating due diligence requirements especially given the sole major shareholder/director.

3. Positive Indicators:

• Positive Net Assets and Working Capital: Net assets remain positive at £18,124 and net current assets at £6,395, indicating solvency and ability to cover short-term liabilities.
• No Overdue Filings: Accounts and confirmation statements are up to date, showing regulatory compliance and good governance on reporting.
• Stable Ownership and Management: Single controlling person with full voting rights and director role provides clear accountability and decision making.

4. Due Diligence Notes:

• Investigate reasons behind the sharp decrease in cash balances in the latest year and assess if this is a one-off event or persistent liquidity risk.
• Clarify nature and terms of the £2,000 long-term creditor to evaluate potential impact on future cash flows.
• Review underlying profitability and revenue trends not visible in abridged accounts to understand operational stability and growth prospects.
• Confirm any contingent liabilities or off-balance sheet commitments given limited disclosure.
• Assess dependence on the director/shareholder and any related party transactions or guarantees.