Company Number: 13808635

Analysis Date: 2025-07-20 19:05 UTC

1. Risk Rating: MEDIUM
   The company shows improvement in net current assets and net assets in the latest financial year, indicating a positive liquidity position. However, the relatively low cash balance and reliance on amounts owed by associates create some concerns. The short trading history and related party transactions warrant caution.

2. Key Concerns:

• Related Party Debtors: A significant portion (£24,494) of current assets are amounts owed by associates, which may affect liquidity if these debts are not collectible timely.
• Cash Position: Despite improvement, cash at bank (£11,185) remains modest relative to current liabilities (£15,432), potentially limiting the company’s ability to meet immediate obligations without converting debtors or additional funding.
• Profitability and Sustainability: The company has recently transitioned from a small loss position to a profit and loss reserve of £20,147, but the lack of detailed profit and loss information and short trading history limit assessment of long-term operational stability.

3. Positive Indicators:

• Improved Working Capital: Net current assets increased substantially from £52 to £20,247, demonstrating better short-term financial health.
• No Overdue Filings: The company is current with both accounts and confirmation statement filings, indicating good regulatory compliance.
• Stable Ownership and Management: Both directors have been in place since incorporation, with no negative records or disqualifications, supporting governance stability.

4. Due Diligence Notes:

• Verify the collectability and nature of amounts owed by associates and related parties to assess liquidity risk.
• Obtain more detailed profit and loss accounts to evaluate revenue streams, cost structure, and profitability trends.
• Review cash flow statements and forecast to understand operational cash generation and financing needs.
• Confirm any off-balance sheet liabilities or contingent liabilities not disclosed in the accounts.
• Investigate reasons and implications of the company’s name change in 2022 to assess any material business restructuring.