Company Number: 13417672

Analysis Date: 2025-07-20 14:19 UTC

1. Risk Rating: MEDIUM
   The company demonstrates a recent significant deterioration in current asset liquidity and working capital, with net current liabilities as of the latest financial year end. However, it remains solvent on a net asset basis and continues active trading with no overdue filing obligations.

2. Key Concerns:

• Negative net current assets (£ -5,432) at 31 May 2024 raise liquidity concerns and potential short-term cash flow stress.
• Sharp increase in current liabilities from £3,206 in 2023 to £13,846 in 2024, which may indicate increased short-term obligations or delayed payments.
• Reduction in net assets/shareholders’ funds from £11,543 in 2023 to £3,048 in 2024, suggesting erosion of equity capital over the year.

3. Positive Indicators:

• Company remains active, with no overdue statutory filings, indicating compliance with regulatory requirements.
• Sole director and 75-100% shareholder is consistent and stable, reducing governance complexity.
• Micro-entity status limits audit obligations, reducing overhead and compliance burdens for a small operation.
• Presence of a functional website and contact details suggests ongoing operational business activities.

4. Due Diligence Notes:

• Investigate reasons behind the substantial rise in current liabilities and corresponding liquidity strain during FY2024.
• Clarify whether the company has access to credit lines or other sources of short-term finance to manage working capital deficits.
• Review aging of payables and receivables to assess cash flow cycle efficiency and risk of default.
• Confirm whether the company has any contingent liabilities or off-balance sheet obligations not reflected in current accounts.
• Examine the impact of the name change in January 2024 on business continuity or contractual relationships.
• Assess the underlying profitability and revenue trends, which are not disclosed here, to understand operational sustainability.