Company Number: 13784018

Analysis Date: 2025-07-29 18:48 UTC

1. Risk Rating: MEDIUM
   The company shows modest net assets and a recent increase in equity, but current liabilities consistently exceed current assets, indicating potential liquidity concerns. The business is young and small-scale, which inherently carries higher operational risks.

2. Key Concerns:

• Liquidity Deficit: Current assets (£4,013) are significantly lower than current liabilities (£12,392) as of 2023, implying a negative net working capital position and potential cash flow stress.
• Declining Fixed Assets: Fixed assets dropped from £17,787 in 2022 to £13,340 in 2023, which may indicate asset disposals or write-downs that could affect operational capacity.
• Small Scale and Limited Financial History: Incorporated in late 2021 and categorized as a micro entity, the company has limited financial track record for assessing stability and resilience over economic cycles.

3. Positive Indicators:

• Improved Net Assets: Net assets increased from £1,433 in 2022 to £4,961 in 2023, suggesting some strengthening of the capital base.
• No Overdue Filings: Both accounts and confirmation statements are filed on time, demonstrating regulatory compliance and good governance practices.
• Stable Leadership: A single director and person of significant control (Mr. Simon James Hancock) with no reported disqualifications, providing clear accountability.

4. Due Diligence Notes:

• Investigate the nature and timing of fixed asset reductions to understand impact on operations.
• Review cash flow statements (not available here) to assess liquidity management and ability to meet short-term obligations.
• Confirm the sustainability of revenue and profitability trends given the small size and limited employee base.
• Evaluate any contingent liabilities or off-balance sheet exposures not reflected in micro entity accounts.
• Assess industry conditions and competitive positioning in freight transport by road (SIC 49410) to gauge operational risks.