Company Number: 12677584

Analysis Date: 2025-07-20 15:08 UTC

1. Risk Rating: MEDIUM
   The company shows a recent loss and a significant decline in turnover, which raises concerns about operational sustainability. However, positive net current assets and no overdue filings reduce immediate solvency and compliance risks.

2. Key Concerns:

• Declining Revenue and Profitability: Turnover dropped from £427.7k (FY 2023) to £219.8k (FY 2024), with a loss of £43k in FY 2024 after prior marginal profitability. This trend signals potential operational challenges.
• Single Director and Secretary: Both roles held by the same individual, Mr. Madhan Vubra, which could concentrate control and increase governance risk.
• Limited Financial Cushion: Although net current assets remain positive (£15.6k), the reduction from £19.7k the prior year constrains liquidity flexibility, especially in the context of losses.

3. Positive Indicators:

• Positive Net Current Assets: Adequate working capital position with current assets exceeding current liabilities by £15.6k at FY 2024 year-end.
• Timely Compliance: No overdue accounts or confirmation statement filings, indicating good regulatory compliance and governance discipline.
• Micro Entity Status: Small scale with low fixed assets and minimal staff costs (one employee), which may allow agile cost management.

4. Due Diligence Notes:

• Investigate Causes of Revenue Decline and Loss: Understand whether the drop in turnover and the loss are due to market conditions, client loss, or internal issues.
• Assess Cash Flow and Credit Terms: Review cash flow statements and creditor aging to verify liquidity beyond balance sheet snapshots.
• Review Director’s Role and Control: Evaluate governance structure risks given sole director and secretary status, and confirm absence of related-party transactions or conflicts.
• Examine Future Business Plans: Obtain management forecasts or strategic plans to assess sustainability and potential recovery.