Company Number: 13951370

Analysis Date: 2025-07-20 11:22 UTC

1. Risk Rating: MEDIUM
   The company is relatively new (incorporated in 2022) and classified as a micro-entity, with limited financial history. While it currently shows positive net assets and working capital, the significant reduction in net assets and current assets year-on-year and the director loan balance raise medium risk concerns regarding financial stability and liquidity.

2. Key Concerns:

• Declining Net Assets and Current Assets: Net assets dropped from £45,392 in 2023 to £21,920 in 2024, and current assets decreased significantly from £67,157 to £23,412, indicating potential operational or cash flow pressures.
• Director Loan Payable: The company owes an unsecured, interest-free director loan of £9,763 as at 31 March 2024, which may signal reliance on director funding and possible liquidity constraints.
• No Employees and Limited Operational Data: The company reported zero employees during the year, which may indicate minimal operational activity or outsourcing, limiting insight into operational sustainability.

3. Positive Indicators:

• Positive Net Current Assets: Despite the decline, net current assets remain positive (£20,836), suggesting the company can currently meet short-term liabilities.
• Timely Filing and Compliance: Both accounts and confirmation statements are up to date with no overdue filings, indicating good regulatory compliance and governance.
• Clear Ownership and Governance: There are two current directors with clear control records, and no disqualification or governance issues apparent from the data.

4. Due Diligence Notes:

• Investigate the cause of the significant reduction in current assets and net assets between 2023 and 2024 to understand operational or financial challenges.
• Clarify the terms and impact of the director loan on liquidity and whether there is a plan for repayment or conversion.
• Review any trading or revenue details not disclosed, given the absence of employees and minimal fixed assets, to assess business model sustainability.
• Confirm that there are no contingent liabilities or off-balance-sheet obligations that may affect solvency.