Company Number: 12811454

Analysis Date: 2025-07-29 18:57 UTC

1. Risk Rating: LOW to MEDIUM
   Justification: The company is active, compliant with filing deadlines, and shows a modest profit in its latest micro-entity accounts. Net assets have grown from £1 to £7,542 in the last year, indicating some positive progress. However, absolute financial scale is very small and turnover is modest, which implies limited operational scale and potential vulnerability to cash flow shocks.

2. Key Concerns:

• Very limited financial resources: Current assets are only £515 with net assets of £7,542, indicating a very small capital base and limited liquidity buffer.
• Low turnover (£48,491) and thin profit margin (£1,692) may constrain operational sustainability and growth potential.
• Ownership and control are heavily concentrated (one person owning 75-100% shares and voting rights), which may increase governance risk and reduce external oversight.

3. Positive Indicators:

• Financial filings are up to date with no overdue accounts or confirmation statements, indicating good compliance and governance discipline.
• The company has moved from negligible net assets to a modest positive net asset position in the latest year, showing some business progress.
• The addition of a director with an accounting background in 2024 could improve financial oversight and operational management.

4. Due Diligence Notes:

• Review detailed cash flow statements and working capital trends for liquidity sustainability beyond static balance sheet figures.
• Investigate the nature of cost of materials (£33,095) and other charges (£13,704) relative to turnover to assess expense management and profitability drivers.
• Evaluate reliance on key personnel and the impact of ownership concentration on decision-making and succession planning.
• Confirm the consistency of reported turnover and profit with bank statements or tax filings to validate reported financial performance.
• Assess market positioning and customer base to evaluate operational stability and growth prospects in the cleaning services sector.