Company Number: 13326452

Analysis Date: 2025-07-29 20:04 UTC

1. Risk Rating: MEDIUM
   Justification: The company shows declining net assets and a sharp decrease in current assets from 2023 to 2024, with current liabilities nearly matching current assets in the latest year. While still solvent on paper, the minimal net current assets and low cash buffer indicate potential liquidity pressure.

2. Key Concerns:

• Liquidity Tightness: Current assets fell from £9,683 to £3,949 while current liabilities decreased less proportionally, leaving net current assets at a precarious £27 in 2024, down from £1,691 the prior year. This suggests reduced short-term cash availability to meet obligations.
• Declining Net Assets: Net assets dropped from £3,376 in 2023 to £1,291 in 2024, signaling erosion of equity and potentially underlying operational losses or write-downs.
• Very Small Scale and Limited Capital: The company remains micro-entity sized with only £1 share capital and a sole employee, potentially limiting operational resilience and financial flexibility.

3. Positive Indicators:

• No Overdue Filings: Accounts and confirmation statements are filed on time, indicating compliance with regulatory requirements.
• Active Status with Established Control: The company is active since 2021 with clear ownership and director structure, including a controlling shareholder with full voting rights.
• Stable Fixed Assets: Although modest, the fixed asset base remains consistent with no concerning write-offs.

4. Due Diligence Notes:

• Review detailed profit and loss accounts to understand causes of equity decline and cash flow trends.
• Assess the company’s working capital management and creditor payment terms given the tight net current asset position.
• Investigate any off-balance sheet liabilities or contingent risks not reflected in micro-entity accounts.
• Validate the operational business model sustainability given the single employee and small scale.
• Confirm absence of director conduct issues or disqualifications for the key individuals.