Company Number: 14114560

Analysis Date: 2025-07-29 20:31 UTC

1. Risk Rating: MEDIUM
   The company is active and compliant with filing deadlines, which is positive. However, there is a notable increase in current liabilities relative to current assets, and limited financial history due to recent incorporation (2022). The modest net current assets suggest limited cushion against short-term obligations.

2. Key Concerns:

• Liability Growth: Current liabilities have surged from approximately £30k in 2023 to £426k in 2024, a more than tenfold increase, which could indicate cash flow pressure or delayed creditor payments.
• Working Capital Tightness: Net current assets remain positive but marginal (£25k in 2024), suggesting liquidity risks if liabilities crystallize sooner than assets convert to cash.
• No Employees Reported: The absence of employees may mean dependence on directors or contractors, potentially affecting operational scalability and sustainability.

3. Positive Indicators:

• Compliance and Governance: The company has no overdue filings and maintains current director appointments with no disqualifications indicated.
• Strong Debtor Position: Trade debtors increased significantly to £322k, reflecting successful contract wins or sales growth, which if collectible, supports liquidity.
• Equity Growth: Shareholders’ funds nearly doubled from £13k in 2023 to £25k in 2024, indicating retained earnings and some capital support.

4. Due Diligence Notes:

• Investigate the nature and collectability of the large debtor balance (£322k) to assess real liquidity.
• Review creditor aging and terms behind the £426k current liabilities to understand repayment timing and risk of default.
• Clarify revenue generation, profitability, and cash flow details absent from the accounts, as the income statement is not filed.
• Understand the operational model given no employees are reported—whether the company outsources or relies solely on directors.
• Confirm directors’ background and related party transactions given the concentration of shareholding and control among three directors.