Company Number: 14418173

Analysis Date: 2025-07-29 19:35 UTC

1. Risk Rating: MEDIUM
   The company is currently active with no overdue filings and appears compliant with Companies House requirements. However, the financial data reveals some liquidity and operational concerns that justify a medium risk rating.

2. Key Concerns:

• Liquidity Concentration in Debtors: The company has a high level of debtors (£269,987) relative to cash (£43,102), indicating potential collection risk and liquidity pressure if receivables are delayed or irrecoverable.
• Rising Current Liabilities: Current liabilities have more than doubled from £99,110 in 2023 to £206,017 in 2024, which may strain short-term cash flow despite increased current assets.
• Substantial Operating Lease Commitments: Outstanding non-cancellable operating lease commitments exceed £1 million, a significant fixed cost obligation that could impact cash flow and operational flexibility.

3. Positive Indicators:

• Positive Net Current Assets and Net Assets: The company maintains positive net current assets (£107,072) and net assets (£125,782), indicating solvency at the balance sheet date.
• Compliance and Timely Filings: No overdue accounts or confirmation statements, showing good regulatory compliance and governance discipline.
• Steady Employment Growth: The average number of employees increased from 3 to 7 in the latest year, suggesting business scaling and operational expansion.

4. Due Diligence Notes:

• Receivables Quality and Aging: Investigate the age profile and collectability of the debtor balances to assess real liquidity risk.
• Lease Agreement Terms: Review lease contracts to understand the duration, costs, and any flexibility or escalation clauses that could affect future commitments.
• Profitability and Cash Flow Trends: Obtain profit and loss accounts or management accounts to analyze operational profitability and cash generation capacity, as these are not included in the submitted accounts.
• Related Party Transactions: With multiple directors sharing the same address and common surnames, assess potential related-party transactions or intra-group balances that may affect financial stability.
• Share Ownership Discrepancies: Clarify the conflicting PSC information regarding share ownership percentages to understand control and any possible changes in ownership structure.