Company Number: 13909968

Analysis Date: 2025-07-29 20:53 UTC

1. Risk Rating: MEDIUM
   The company shows a significant decline in net assets from £4,632 in 2023 to £215 in 2024, indicating potential solvency pressure. While still positive, the minimal net assets and very tight working capital (net current assets of £115 in 2024) suggest limited financial buffer to absorb shocks.

2. Key Concerns:

• Deteriorating Financial Position: A sharp drop in net assets within one year raises questions about profitability or asset write-downs.
• Liquidity Constraints: Current assets barely cover current liabilities, implying limited short-term liquidity and potential cash flow stress.
• Small Scale and Limited Financial Disclosure: As a micro-entity with only two employees and minimal financial data, there is limited transparency and scale, which could impact operational sustainability.

3. Positive Indicators:

• Compliance and Timely Filing: Accounts and confirmation statement are up to date with no overdue filings, indicating good regulatory compliance.
• Ownership and Governance Stability: One major shareholder/director owns 75-100% of shares and voting rights, providing clear decision-making authority.
• No Sign of Insolvency or Liquidation: The company is active, not in liquidation or administration, implying ongoing operations.

4. Due Diligence Notes:

• Investigate the cause of the sharp decline in net assets and working capital from 2023 to 2024, including underlying profitability and asset valuation.
• Review cash flow statements and bank balances to assess liquidity beyond balance sheet snapshots.
• Understand the business model and revenue streams given the small scale and limited financial data.
• Verify any contingent liabilities or off-balance-sheet obligations that might affect solvency.
• Confirm the background and reputation of key directors, particularly given the control concentration.