Company Number: 12927855

Analysis Date: 2025-07-29 17:28 UTC

1. Risk Rating: MEDIUM

Justification: The company is active and has filed up-to-date accounts and confirmation statements, indicating compliance with statutory obligations. However, the balance sheet reveals modest net assets (£2,525 as of October 2024), a history of prior losses, and significant long-term liabilities (bank loans). The increase in assets and net current assets is positive, but the reliance on loans and relatively low equity base suggest moderate solvency and liquidity risk.

2. Key Concerns:

• Elevated long-term bank loans (£4,876) relative to net assets and equity, which may pressure solvency if cash flows weaken.
• Current liabilities increased sharply to £32,007 in 2024 from £3,692 in 2023, potentially indicating short-term liquidity constraints.
• Prior years’ accumulated losses leading to negative net assets in 2022 and 2023, only recently returning to positive territory, raising questions about sustained profitability.

3. Positive Indicators:

• Recent turnaround to positive net assets and shareholders’ funds in 2024 (£2,525), reflecting improved financial health.
• Significant increase in cash reserves (£33,159 in 2024 vs £4,300 in 2023), which supports liquidity.
• Growing asset base including tangible fixed assets, indicating investment in operational capacity.
• Compliance with all filing deadlines, no overdue accounts or confirmation statements, demonstrating good governance.

4. Due Diligence Notes:

• Review cash flow statements and profit and loss accounts (not filed publicly here) to assess operational cash generation and profitability trends.
• Investigate the terms and repayment schedule of the bank loans and other loans to evaluate debt serviceability.
• Assess the business model and contracts underpinning turnover recognition to confirm revenue reliability given the SIC code "Other human health activities."
• Confirm the director’s strategy for maintaining solvency and managing liabilities, especially given the small equity base.
• Verify the nature and age of creditors in current liabilities to understand short-term payment obligations and possible liquidity risks.