Company Number: 15515482

Analysis Date: 2025-07-29 12:55 UTC

1. Risk Rating: LOW

Justification: The company is newly incorporated (February 2024) but has filed timely accounts and confirmation statements with no overdue filings. It reported a small but positive operating profit for the period ending February 2025, with net assets slightly positive at £8. The director is the sole significant controller and also the only employee, which is typical for a micro-entity. There are no indications of insolvency or regulatory issues.

2. Key Concerns:

• Minimal cash balance (£71) relative to current liabilities (£3,797) could pose liquidity constraints despite positive net current assets due to debtors.
• Very limited scale of operations with turnover of only £28,437 and a single director/employee; business sustainability depends heavily on this individual.
• Dividend payout (£10,600) nearly equals profit (£10,607), potentially limiting retained earnings and cash reserves for reinvestment or unforeseen expenses.

3. Positive Indicators:

• Profitability achieved in the first accounting period with operating profit of £13,095 and after-tax profit of £10,607.
• Current assets slightly exceed current liabilities, indicating a positive working capital position.
• Full compliance with statutory filing requirements and no overdue returns or accounts.
• Clear ownership and governance structure with a single director who is also the sole shareholder, reducing governance complexity.

4. Due Diligence Notes:

• Investigate the nature and collectability of trade debtors (£3,734) given the low cash balance.
• Review cash flow forecasts to assess whether the company can sustain operational expenses and dividend payments.
• Confirm the director’s capacity and plans for business growth given the reliance on a single individual.
• Verify any contingent liabilities or off-balance-sheet obligations not disclosed in the accounts.
• Monitor subsequent filings for consistency and any changes in financial position or governance.