Company Number: 13046029

Analysis Date: 2025-07-20 12:31 UTC

1. Risk Rating: LOW
   The company demonstrates a strong improvement in net assets over recent years, positive working capital, and timely filing compliance. Its micro-entity status and increase in employee count suggest growth and operational stability within its niche social care sector.

2. Key Concerns:

• Limited Financial Disclosure: As a micro-entity, financial statements are abbreviated, limiting detail on profitability, cash flows, and contingencies.
• Relatively Small Capital Base: Share capital is minimal (£100), which could constrain raising equity finance if needed.
• Concentration of Control: Two directors hold equal and significant ownership and voting rights, which may present governance risks if disagreements arise.

3. Positive Indicators:

• Improved Financial Position: Net assets increased substantially to £89,884 in 2023 from negative in 2020, showing solid balance sheet recovery.
• Strong Liquidity Position: Net current assets of £76,193 in 2023 indicate the company can cover short-term liabilities comfortably.
• Regulatory Compliance: No overdue filings and accounts submitted on time reflect good governance and regulatory adherence.
• Growing Workforce: Employee numbers increased from 10 to 25, supporting operational scaling and sustainability in the social care sector.

4. Due Diligence Notes:

• Review any available profit and loss or cash flow information to assess operational profitability and cash generation, as micro-entity accounts do not provide this detail.
• Confirm absence of contingent liabilities or off-balance sheet commitments that could impair solvency.
• Evaluate governance arrangements between the two main shareholders/directors to understand decision-making dynamics and risk controls.
• Investigate sector-specific risks such as regulatory changes, funding dependencies, or contractual exposures given the company’s social care activities.
• Consider obtaining management accounts or forecasts for updated financial insights beyond the last filed accounts.