Company Number: 13814619

Analysis Date: 2025-07-20 11:15 UTC

1. Risk Rating: MEDIUM
   The company has demonstrated a significant turnaround from negative net assets (£-76,717) at the end of 2022 to positive net assets (£119,863) at the end of 2023, indicating improved solvency. However, the reliance on a substantial debtor book (£201,859) relative to cash (£33,399) and the recent financial history of losses warrant caution.

2. Key Concerns:

• Liquidity Risk: Current assets are largely composed of debtors, which may present collection risk. Cash on hand (£33,399) is modest compared to current liabilities (£116,958), implying potential short-term cash flow constraints.
• Operational Sustainability: The company has only been active for a short period (since December 2021) and moved from negative equity to positive. The rapid change requires close monitoring of whether this improvement is sustainable through operational cash flows.
• Related Party Control: 75-100% ownership and control by Yewdale Investments Limited suggests potential concentration risk and the need to assess related party transactions and governance.

3. Positive Indicators:

• Improved Financial Position: The firm’s net current assets moved from a deficit of £78,271 in 2022 to a surplus of £118,300 in 2023, indicating enhanced working capital management and solvency.
• No Overdue Filings: Both accounts and confirmation statements are up to date, reflecting good regulatory compliance and governance.
• Active Website and Clear Market Position: The company maintains an active website focused on compliance management for mental health providers, suggesting a defined niche and market presence.

4. Due Diligence Notes:

• Review the aging and collectability of trade debtors to assess liquidity risk more accurately.
• Obtain management accounts or cash flow forecasts to verify the sustainability of improved net asset position and operational cash flows.
• Investigate the nature of transactions with Yewdale Investments Limited and governance arrangements to ensure no conflicts or undue influence.
• Confirm the company’s revenue trends and profitability beyond the balance sheet to assess operational viability.