Company Number: 13822287

Analysis Date: 2025-07-20 16:18 UTC

1. Risk Rating: MEDIUM

Justification: The company shows an improvement in net assets from negative £1,168 in 2022 to positive £407 in 2023, indicating some recovery in financial position. However, the absolute figures are very small and liabilities remain significant relative to assets, presenting solvency and liquidity concerns for a micro-entity. The limited scale and recent incorporation (late 2021) also suggest operational risks due to lack of established financial track record.

2. Key Concerns:

• Negative net assets and current liabilities exceeding current assets in 2022 (£715 assets vs £1,584 liabilities) indicate prior liquidity stress that may recur.
• Presence of £787 creditors due after one year in 2023 suggests longer-term obligations that could pressure cash flow.
• The company operates with just one employee and no fixed assets, implying limited operational scale and potential vulnerability to business disruptions.

3. Positive Indicators:

• Turnaround from net liability position in 2022 to modest net asset position in 2023 shows improving financial stability.
• Timely filing of accounts and confirmation statements with no overdue filings reflects good regulatory compliance.
• Ownership and control concentrated in a single director and shareholder may facilitate decisive management and accountability.

4. Due Diligence Notes:

• Investigate the nature and terms of the £787 long-term creditors recorded in 2023 to assess repayment risk.
• Review cash flow statements (if available) and bank statements to confirm liquidity status beyond balance sheet snapshots.
• Understand the business model and revenue generation to evaluate sustainability given the minimal asset base and single employee.
• Confirm absence of director disqualifications or governance issues given sole directorship.
• Assess whether the company has any contingent liabilities or off-balance sheet obligations.