Company Number: 04095167

Analysis Date: 2026-05-04 12:50 UTC

1. Risk Rating: LOW
   The company demonstrates strong net current assets relative to current liabilities with consistent shareholder equity growth. There are no overdue filings or indication of insolvency or distress. The financial position appears stable with no immediate solvency or liquidity concerns visible.

2. Key Concerns:

• Reliance on a single shareholder (Prova Investments Ltd) holding 75-100% control may pose governance and financial dependency risks.
• Fixed assets have materially decreased in recent years, possibly indicating reduced investment in long-term operational capacity.
• Trade creditor levels doubled from 6,085 to 12,337 year-on-year, which might warrant monitoring to ensure payable obligations do not accumulate unstably.

3. Positive Indicators:

• Net current assets remain strong at £235,646 as of March 2025, providing a comfortable liquidity buffer.
• Cash balances and trade debtors have both increased year-on-year, supporting ongoing operational cash flows.
• No overdue accounts or confirmation statements, suggesting good regulatory compliance and governance standards.
• Small but increasing shareholder funds from £233,812 in 2024 to £243,412 in 2025, reflecting retained earnings growth.

4. Due Diligence Notes:

• Verify the nature and terms of amounts owed by group undertakings (£99,085) to assess intercompany credit risk.
• Review the reasons behind the significant disposal of motor vehicles (£33,600 disposal) and reduced fixed assets to understand operational impacts.
• Assess management controls and financial oversight under the majority ownership by Prova Investments Ltd.
• Examine creditor aging and payment cycles in detail, especially given the increase in trade and other creditors.
• Confirm tax liabilities and social security creditor components given their material balance (£125,631).