Company Number: 13319261

Analysis Date: 2025-07-29 12:17 UTC

1. Risk Rating: MEDIUM

The company shows some financial strain in liquidity, evidenced by negative net current assets in the latest year, despite growth in fixed assets and shareholders' funds. The absence of overdue filings and active status are positive, but the micro-entity scale and relatively recent incorporation limit the breadth of financial information available, warranting a cautious medium risk rating.

2. Key Concerns:

• Liquidity Shortfall: Net current liabilities of £36,046 as of April 2024 indicate potential short-term cash flow challenges that could impact the company's ability to meet immediate obligations.
• Rapid Increase in Creditors: Current liabilities nearly tripled from £49,585 in 2023 to £139,773 in 2024, suggesting increased reliance on short-term financing or supplier credit that may not be sustainable.
• Limited Financial Transparency: As a micro-entity, the company is exempt from audit and does not file a full profit and loss account, restricting insight into operational profitability and cash flow dynamics.

3. Positive Indicators:

• Growing Fixed Assets and Equity: Fixed assets increased significantly from £66,093 to £166,314, and shareholders' funds rose from £84,032 to £130,268 year-on-year, indicating reinvestment and accumulation of net worth.
• Compliance with Filing Requirements: No overdue accounts or confirmation statements are noted, reflecting good regulatory compliance and governance.
• Stable Ownership and Management: Directors and persons of significant control have been consistent since incorporation, suggesting stable leadership.

4. Due Diligence Notes:

• Review detailed cash flow statements and management accounts (if available) to assess the company's ability to manage working capital and service short-term liabilities.
• Investigate the nature and terms of the increased current liabilities to determine if these are trade payables, short-term loans, or other obligations.
• Examine the company's revenue trends and profitability metrics, which are not disclosed in the micro-entity filing, to evaluate operational sustainability.
• Confirm that no director disqualifications or negative conduct records exist for the current directors.
• Validate the impact of the recent name change on brand recognition or contractual relationships.