Company Number: 13636700

Analysis Date: 2025-07-20 14:31 UTC

1. Risk Rating: MEDIUM
   The company shows positive net assets and working capital but has declining liquidity and net assets over recent years. Modest scale and limited financial buffers suggest moderate solvency risk.

2. Key Concerns:

• Declining cash reserves: Cash dropped from £58,399 (2023) to £33,511 (2024), indicating tightening liquidity.
• Decreasing net assets: Reduced from £17,436 (2021) to £9,263 (2024), which may reflect accumulated losses or capital erosion.
• Small operational scale: Single employee and relatively low asset base could constrain operational flexibility and resilience to shocks.

3. Positive Indicators:

• Positive net current assets (£4,384 in 2024) indicating the company can meet short-term liabilities currently.
• No overdue filings or compliance issues noted; accounts and confirmation statements are up to date.
• Experienced leadership: Directors with ongoing roles and no adverse governance flags identified.

4. Due Diligence Notes:

• Review profit and loss trends and cash flow statements (not provided here) to assess operational performance and sustainability.
• Investigate reasons for significant cash decline in the latest year and whether this is a seasonal or structural issue.
• Confirm any contingent liabilities or off-balance sheet obligations beyond provisions reported (£1,150 in 2024).
• Assess customer concentration and debtor aging given the increase in trade debtors from £3,406 to £5,250.
• Verify the impact of the small company exemption on transparency and consider requesting additional financial disclosures.