Company Number: 12443947

Analysis Date: 2025-07-29 20:22 UTC

1. Risk Rating: MEDIUM
   The company shows a recent return to positive net assets after reporting substantial net liabilities the previous year. This volatility raises concerns about financial stability, although the current micro-entity status and small scale limit absolute exposure.

2. Key Concerns:

• Financial Volatility: The company reported significant net liabilities (£18,472) as of 29 February 2023, reversing to a modest net asset position (£1,369) by 29 February 2024, indicating potential financial distress or restructuring.
• Low Capitalisation: Share capital is minimal (£443.21), which may limit the company’s ability to absorb shocks or invest in growth.
• Director Turnover and Concentration: One director resigned recently (July 2024), and control is concentrated with two individuals owning between 25-50% shares each, which may impact governance and operational continuity.

3. Positive Indicators:

• Timely Filings and Compliance: No overdue accounts or confirmation statements, suggesting good regulatory compliance.
• Improved Working Capital: Net current assets improved from negative £19,433 (2023) to positive £720 (2024), indicating better short-term liquidity management.
• Consistent Workforce: Maintained an average of 4 employees over two years, suggesting operational stability at a small scale.

4. Due Diligence Notes:

• Investigate the cause of the significant net liabilities reported in 2023 and the measures taken to restore positive net assets in 2024.
• Review cash flow statements and any related party transactions to assess liquidity risks not visible in balance sheet data.
• Confirm the reasons for director resignation and assess impact on strategic direction and governance.
• Examine customer concentration, contracts, and revenue streams given the small scale and volatility in financial position.
• Verify the nature of fixed assets and whether any impairment or disposals occurred between 2023 and 2024.