Company Number: 13224461

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

1. Risk Rating: MEDIUM
   The company's financial data indicates modest net assets and a low level of share capital, with a relatively high proportion of creditors due after more than one year. While it is currently solvent, the limited equity base and long-term liabilities pose moderate solvency risk.

2. Key Concerns:

• Leverage and Long-Term Creditors: Significant amounts of creditors due after more than one year (£28,117 in 2024) compared to net assets (£5,036) may stress solvency if cash flows weaken.
• Limited Share Capital and Equity Buffer: Share capital of only £2 and modest net assets suggests a thin capital base, limiting the company’s ability to absorb losses.
• Minimal Workforce and Scale: One employee on average indicates a very small operational scale, which may limit business resilience and growth capacity.

3. Positive Indicators:

• Improving Net Assets: Net assets increased from £3,131 in 2023 to £5,036 in 2024, showing some strengthening of the balance sheet.
• Current Assets Exceed Current Liabilities: Positive net current assets (£2,983 in 2024) suggest short-term liquidity is adequate.
• No Overdue Filings: Accounts and confirmation statements are filed on time, indicating compliance with regulatory requirements.

4. Due Diligence Notes:

• Review the nature and terms of the long-term creditors to assess repayment schedules, interest obligations, and covenant risks.
• Assess cash flow statements and profit & loss accounts (not provided) to understand operational cash generation and sustainability.
• Investigate any contingent liabilities or off-balance sheet items that might affect financial stability.
• Confirm the business model viability given the small scale and investigate plans for growth or capital injection.
• Validate director background and governance practices, noting both directors reside at the same address and one is also a person with significant control.