Company Number: 13167043

Analysis Date: 2025-07-20 16:18 UTC

1. Risk Rating: MEDIUM
   The company shows a significant decline in net assets and working capital in the most recent year (2024), which suggests a potential deterioration in financial stability. Although it remains solvent, the reduction in liquidity and equity warrants caution.

2. Key Concerns:

• Declining Net Assets and Working Capital: Net assets dropped from £9,654 in 2023 to £2,248 in 2024, and net current assets fell from £5,744 to £1,576, indicating weakening financial buffers.
• Reduced Employee Base: The average number of employees halved from 2 to 1 in the latest year, possibly signaling downsizing or operational contraction.
• Limited Financial Transparency: The company has elected not to present a profit and loss account, limiting insight into profitability and cash flow performance.

3. Positive Indicators:

• Current on Filings: No overdue accounts or confirmation statements, indicating compliance with regulatory requirements.
• Minimal Debt Burden: Current liabilities remain modest and manageable relative to current assets, maintaining a positive net working capital position.
• Controlled Ownership and Governance: Clear significant control structure with an active director and majority shareholder, implying stable governance.

4. Due Diligence Notes:

• Review underlying causes for the sharp decline in net assets and working capital between 2023 and 2024, including any unusual or non-recurring expenses or asset disposals.
• Obtain management accounts or cash flow statements to assess operational liquidity and profitability trends, since profit and loss details are not publicly available.
• Investigate the reason for the reduction in workforce and any operational impact on service delivery or revenue generation.
• Confirm there are no contingent liabilities or off-balance sheet obligations that might pose solvency risks.
• Verify director and shareholder intentions regarding future funding or business strategy to address financial weakening.