Company Number: 13172842

Analysis Date: 2025-07-19 13:03 UTC

1. Risk Rating: MEDIUM
   The company demonstrates modest net assets and appears solvent at the balance sheet date, but there are signs of declining equity and reduced liquidity that warrant cautious monitoring.

2. Key Concerns:

• Declining Shareholders’ Funds: Equity reduced from £9,070 in 2024 to £3,705 in 2025, indicating accumulated losses or distributions exceeding profits.
• Reduced Current Assets and Increased Accruals: Current assets dropped substantially from £12,793 to £7,417 while accruals and deferred income nearly doubled, potentially signaling cash flow timing issues or deferred revenue pressures.
• No Employees Reported: The absence of employees could reflect a very lean operational model which might limit growth potential and operational resilience.

3. Positive Indicators:

• Positive Net Current Assets: Despite the decline, net current assets remain positive (£7,417 current assets minus £2,999 current liabilities), indicating short-term obligations can be met.
• No Overdue Filings: Accounts and confirmation statements are timely, reflecting compliance with statutory requirements and good governance practices.
• Controlled Ownership and Management: Single director and controlling shareholder simplify decision-making and reduce governance complexity.

4. Due Diligence Notes:

• Investigate causes of the significant drop in shareholders’ funds and whether this trend is expected to continue.
• Review the nature of accruals and deferred income to assess any potential liabilities or revenue recognition issues.
• Confirm the business model sustainability given no employees are recorded and reliance on director or contractors.
• Verify cash flow statements and bank balances to better understand liquidity beyond balance sheet snapshots.
• Assess the company’s client base and pipeline given the IT consultancy industry context and minimal asset base.