Company Number: 13536754

Analysis Date: 2025-07-20 17:19 UTC

1. Risk Rating: MEDIUM
   The company shows positive net assets and net current assets, indicating solvency on paper. However, the sharp decline in working capital and net assets in the latest year compared to the prior two years warrants caution. The small scale and limited financial disclosure typical of a micro-entity also limit visibility.

2. Key Concerns:

• Declining Financial Position: Net current assets decreased from £17,952 in 2023 to £6,173 in 2024, a significant reduction of nearly 66%, which may indicate weakening liquidity or increased short-term obligations.
• Micro-Entity Size and Limited Scale: Being a micro company with only one employee and limited assets restricts operational flexibility and increases vulnerability to cash flow shocks.
• Single Director and Significant Control Concentration: The sole director and 100% share ownership concentration in one individual could pose governance and continuity risks.

3. Positive Indicators:

• Timely Filing and Compliance: Accounts and confirmation statements are up to date with no overdue filings, indicating regulatory compliance and good governance in this area.
• Positive Net Assets: Despite the decline, net assets remain positive at £6,173, suggesting the company is not currently insolvent.
• Stable Employment: The company maintains at least one employee, indicating ongoing operations rather than dormancy.

4. Due Diligence Notes:

• Investigate the reasons behind the substantial fall in net current assets between FY2023 and FY2024, including any changes in receivables, payables, or cash balances.
• Review cash flow statements if available to assess cash generation and liquidity trends beyond balance sheet snapshots.
• Examine the company’s business model and revenue streams to evaluate operational sustainability given its micro scale and sector classification under “Other business support service activities.”
• Confirm director’s background and any potential conflicts of interest given sole control and ownership.
• Assess any contingent liabilities or off-balance-sheet commitments not disclosed in the micro-entity accounts.