Company Number: 12782154

Analysis Date: 2025-07-29 20:21 UTC

1. Risk Rating: MEDIUM
   The company demonstrates positive net assets and working capital, indicating solvency. However, the significant reduction in net assets from £71,346 (2023) to £46,194 (2024), coupled with a notable decrease in debtors and current assets, suggests potential liquidity pressures or declining business volume. The presence of director loans with fluctuating balances warrants closer scrutiny.

2. Key Concerns:

• Decline in net assets and net current assets between 2023 and 2024, which may signal operational challenges or reduced profitability.
• Material decrease in debtors (from £62,119 to £41,739) and current assets overall, potentially indicating slower collections or lower sales.
• Director loans show complex movements with repayments and further loans; the net balance and terms should be examined for potential related party risk or impact on cash flow.

3. Positive Indicators:

• The company remains solvent with net current assets of £41,782 and positive shareholders’ funds of £46,194 at the latest year-end.
• Cash holdings increased slightly from £21,857 to £22,867, providing some liquidity buffer.
• The company is compliant with filing deadlines for both accounts and confirmation statements, suggesting good regulatory adherence.
• The company has grown its workforce from 1 to 2 employees, indicating some operational expansion.

4. Due Diligence Notes:

• Review detailed profit and loss data (currently not filed publicly) to understand the drivers behind the decline in net assets and assess profitability trends.
• Investigate the nature and terms of director loans, including repayment schedules and interest, to evaluate any financial or governance risks.
• Clarify the composition of "Other debtors," which decreased substantially, to determine if there are any doubtful debts or related party transactions.
• Assess ongoing contracts and revenue streams under SIC code 62090 to understand business sustainability and market position.
• Confirm that all tax liabilities and provisions are adequately covered, given the increase in taxation and social security creditors from 2023 to 2024.