Company Number: 14403215

Analysis Date: 2025-07-20 14:00 UTC

1. Risk Rating: MEDIUM
   The company shows positive net assets and working capital but experienced a significant reduction in cash and net assets in the latest financial year, which signals some caution. The small scale of operations and low share capital also contribute to a moderate risk profile.

2. Key Concerns:

• Decline in Cash Reserves: Cash dropped from £30,403 in FY 2023 to £5,114 in FY 2024, indicating potential liquidity strain.
• Reduced Net Assets and Working Capital: Net assets fell from £22,183 to £6,053 and net current assets from £21,668 to £5,591, showing diminished financial buffer.
• Small Scale and Limited Equity: Share capital remains nominal (£2), with a single employee, suggesting limited operational scale and potential vulnerability to business shocks.

3. Positive Indicators:

• Positive Net Working Capital: Despite declines, net current assets remain positive (£5,591), indicating the company can cover short-term liabilities.
• No Filing or Compliance Issues: Accounts and confirmation statements are up to date with no overdue filings, reflecting good regulatory compliance.
• Experienced Directors: Directors have professional backgrounds (solicitor and director), potentially supporting sound governance and operational oversight.

4. Due Diligence Notes:

• Investigate reasons for the sharp reduction in cash and net assets during FY 2024 and whether this trend is expected to continue.
• Assess the company’s revenue streams, profitability, and cash flow forecasts to confirm operational sustainability.
• Review the nature of creditors and any contingent liabilities or off-balance sheet obligations not reflected in the filleted accounts.
• Evaluate reliance on key personnel given the very small workforce and any plans for scaling operations.