Company Number: 13539013

Analysis Date: 2025-07-20 17:49 UTC

1. Risk Rating: MEDIUM
   The company has recovered from prior negative equity to a marginal positive net asset position in the latest year, indicating some improvement. However, the net current assets and shareholders' funds remain minimal, suggesting limited financial buffer to absorb shocks.

2. Key Concerns:

• Thin Liquidity Position: Current assets (£5,946) are only slightly above current liabilities (£5,910), resulting in net current assets of just £36, which is a very narrow margin and may pose cash flow risks.
• Historical Negative Equity: The company reported negative shareholders' funds in the previous two years (-£1,372), indicating past solvency issues that may still impact operational stability.
• Single Employee Dependency: The company operates with an average of 1 employee, which could limit operational capacity and resilience.

3. Positive Indicators:

• Recent Financial Improvement: The latest accounts show a positive turnaround in net assets and net current assets compared to previous years, indicating better financial management or business performance.
• Compliance with Filing Requirements: The company has not missed any filing deadlines for accounts or confirmation statements, reflecting good regulatory compliance.
• Clear Ownership and Control: Ownership and control are well documented with two directors/shareholders holding between 25-50% shares each, providing transparency in governance.

4. Due Diligence Notes:

• Investigate the nature of current assets to confirm liquidity quality (e.g., cash vs. receivables).
• Review cash flow statements if available to assess operational cash generation and timing of liabilities.
• Understand the operational model given the very small employee base and how the company plans to sustain or grow its business.
• Confirm no undisclosed liabilities or contingent risks exist given the prior history of negative equity.
• Verify director appointments and their roles, since one director was appointed only recently (July 2025), which is in the future relative to the last accounts date and may indicate data timing issues.