Company Number: 13827691

Analysis Date: 2025-07-29 20:17 UTC

1. Risk Rating: MEDIUM
   The company shows a small positive net asset position as of the latest accounts, recovering from a negative net asset position the prior year. However, the high level of long-term liabilities relative to modest fixed assets and very limited current assets raises concerns about liquidity and solvency under stress. The micro-entity status limits financial disclosure, which reduces transparency.

2. Key Concerns:

• High Long-Term Liabilities: The company carries £132k+ in creditors due after one year, significantly higher than fixed assets (£223k) and net assets (~£9k), indicating potential solvency pressure if liabilities crystallize.
• Minimal Current Assets and Working Capital: Current assets are very low (~£1,300) against current liabilities of over £82,000, resulting in negative net current assets exceeding £80,000, which suggests liquidity constraints.
• Limited Financial History and Scale: Incorporated in 2022 and classified as a micro-entity with only one employee, the company’s operational scale and financial track record are limited, increasing uncertainty about ongoing viability.

3. Positive Indicators:

• Improved Net Asset Position: The net assets moved from a negative £1,005 in 2023 to a positive £9,155 in 2024, indicating some progress in financial stability.
• No Overdue Filings: The company is up to date with both accounts and confirmation statement filings, reflecting compliance with statutory obligations.
• Experienced Directors with Significant Control: Directors have clear roles and control structure, with one director holding majority ownership and voting rights, which may facilitate decisive governance.

4. Due Diligence Notes:

• Verify the nature and terms of the long-term creditors to understand repayment obligations and covenants.
• Investigate cash flow statements or management accounts to assess liquidity beyond the balance sheet snapshot.
• Review any contingent liabilities or off-balance sheet risks that may impact solvency.
• Explore the business model and revenue generation details given the minimal employee count and asset base.
• Confirm whether the directors have plans or capital injections in place to manage working capital deficits.