Company Number: 13938321

Analysis Date: 2025-07-29 19:37 UTC

1. Risk Rating: MEDIUM
   The company shows very limited net assets (£230) as of the latest financial year end, down sharply from £8,248 the prior year, indicating potential capital erosion. Its micro-entity size limits disclosure detail, making a thorough solvency assessment difficult, but the significant reduction in net assets and current assets suggests some liquidity pressure. However, no overdue filings or liquidation status mitigate immediate concerns.

2. Key Concerns:

• Sharp decline in net current assets from £8,248 in 2023 to £230 in 2024, signaling possible cash flow or operational funding issues.
• Very low absolute level of current assets (£1,956) relative to liabilities (£1,726), which may constrain the company’s ability to meet short-term obligations comfortably.
• Single director and sole person with significant control poses governance concentration risk and potential lack of oversight.

3. Positive Indicators:

• Company is active and compliant with all filing deadlines, indicating good regulatory adherence.
• Micro-entity reporting exemption utilized appropriately, reducing administrative burden.
• No indication of insolvency proceedings or director disqualifications.
• Business has maintained stable employee count (1 employee), consistent with a small-scale operation.

4. Due Diligence Notes:

• Investigate reasons behind the sharp decrease in net assets and current assets in the latest year, including any one-off expenses or changes in business model.
• Review cash flow statements if available to assess operational liquidity and working capital management.
• Understand the nature of the business activity under SIC 82990 and revenue trends since inception in 2022.
• Assess director’s background and capacity to maintain governance given sole control and directorship.
• Confirm no off-balance sheet liabilities or contingent risks not apparent in micro-entity accounts.