Company Number: 13884915

Analysis Date: 2025-07-29 19:48 UTC

1. Risk Rating: MEDIUM
   The company shows a significant increase in liabilities within one year, resulting in a slight net current liability position as of the latest accounts date. While overall net assets have increased substantially due to fixed assets acquisition and retained earnings growth, short-term liquidity pressures are evident and warrant caution.

2. Key Concerns:

• Negative Net Current Assets: As of 28 February 2024, net current assets stand at -£764, indicating current liabilities slightly exceed current assets, which may signal liquidity constraints.
• Substantial Increase in Current Liabilities: Current liabilities have increased sharply from £12,156 in 2023 to £108,838 in 2024, driven by increased trade creditors, VAT, and corporation tax liabilities, raising concerns about short-term cash flow management.
• Concentration of Control: Single director and shareholder controls 75-100% of shares and voting rights. While common in small companies, this concentration may present governance risks and limit independent oversight.

3. Positive Indicators:

• Growth in Net Assets and Shareholder Funds: Net assets rose from £1,161 in 2023 to £20,311 in 2024, reflecting retained earnings accumulation and investment in fixed assets, indicating operational profitability and financial growth.
• Cash Position Improvement: Cash at bank increased from £8,967 to £66,498, supporting liquidity despite increased current liabilities.
• No Filing or Compliance Issues: Accounts and confirmation statements are up to date with no overdue filings, suggesting good regulatory compliance.

4. Due Diligence Notes:

• Investigate the nature and timing of the large increase in current liabilities, particularly VAT and corporation tax, to assess if these are recurring obligations or timing differences.
• Review cash flow statements and bank reconciliations to confirm if liquidity is sufficient to meet short-term liabilities as they fall due.
• Assess the sustainability of profitability given the increase in creditors and tax liabilities, and verify the accuracy of debtor balances (notably the amounts owed by group undertakings).
• Consider governance controls in place given the concentration of ownership and directorship with a single individual.