Company Number: 13627348

Analysis Date: 2025-07-20 16:27 UTC

1. Risk Rating: MEDIUM
   The company’s latest financials indicate a weakening liquidity position with net current liabilities and substantially reduced net assets compared to the prior year. While it remains active, these recent trends suggest moderate solvency risk requiring monitoring.

2. Key Concerns:

• Negative Net Current Assets: As of 30 September 2024, current liabilities exceed current assets by £1,241, indicating potential short-term liquidity difficulties.
• Diminished Net Assets: Net assets have decreased from £511 in 2023 to £100 in 2024, reflecting erosion of equity and reduced financial buffer.
• Very Small Scale of Operations: With only 1 employee and micro-entity status, the company may have limited operational resilience and diversification, increasing vulnerability to adverse events.

3. Positive Indicators:

• Compliance and Filing Up to Date: No overdue accounts or confirmation statements; filings are current, indicating good regulatory compliance.
• No Indication of Insolvency or Liquidation: The company remains active and not under any insolvency procedures.
• Stable Business Focus: Operating in accounting and auditing activities, a service sector with consistent demand, which may support operational sustainability if managed prudently.

4. Due Diligence Notes:

• Investigate the reasons behind the decline in current assets and increase in current liabilities over the last year to assess if this is a temporary working capital issue or a structural problem.
• Review cash flow statements and creditor payment terms to evaluate liquidity management and risk of payment delays or defaults.
• Examine the company's client base and revenue trends to understand operational sustainability given the very small scale.
• Confirm the absence of any director disqualifications or regulatory issues beyond the filings data.
• Consider obtaining management commentary or strategic plans to understand how the company intends to restore financial strength.