Company Number: 13643572

Analysis Date: 2025-07-20 14:27 UTC

1. Risk Rating: MEDIUM
   The company shows a significant decline in net current assets and shareholders’ funds between 2022 and 2023, indicating a potential weakening in financial stability. However, it remains solvent with positive net assets, and no overdue filings or liquidation status are reported.

2. Key Concerns:

• Sharp Decrease in Net Current Assets: Net current assets dropped from £23,380 in 2022 to £3,662 in 2023, a reduction of over 80%, which may suggest liquidity pressures or increased short-term liabilities.
• Low Asset Base: Total net assets of £3,662 are minimal, leaving limited buffer against unforeseen liabilities or financial stress.
• Single Director and Shareholder Control: The company is controlled 100% by one individual who also acts as the sole director, which may pose governance and succession risks.

3. Positive Indicators:

• Current Filing Status: All statutory filings including accounts and confirmation statements are up to date with no overdue returns or penalties.
• Solvency Maintained: Despite asset decline, the company remains solvent with current assets exceeding current liabilities.
• Stable Operational Scale: The number of employees remains stable at one, consistent with a micro-entity profile, suggesting controlled cost structure.

4. Due Diligence Notes:

• Investigate Reasons for Asset Decline: Review detailed financial records or management accounts to understand the causes behind the sharp drop in net current assets and shareholders’ funds from 2022 to 2023.
• Cash Flow Analysis: Assess cash flow statements or bank records to verify liquidity status and ability to meet short-term obligations.
• Director Background and Capacity: Verify the director’s experience and the company’s contingency plans given sole control and shareholding by one individual.
• Business Viability and Pipeline: Evaluate contracts, client base, and revenue generation prospects to confirm operational sustainability.
• Regulatory Compliance: Confirm no hidden regulatory or compliance issues beyond publicly filed data.