Company Number: 13989780

Analysis Date: 2025-07-20 12:21 UTC

1. Risk Rating: LOW
   The company demonstrates positive net assets, improved working capital, and no overdue filings. The presence of a single director who is also the majority shareholder provides clear accountability.

2. Key Concerns:

• The company is very young (incorporated in 2022) with limited financial history, which restricts trend analysis.
• Current liabilities slightly exceed current assets when excluding prepayments, which could signal short-term liquidity pressures if prepayments are not readily realizable.
• Reliance on a single individual (director and shareholder) may pose operational risk if that person becomes unavailable.

3. Positive Indicators:

• Improved financial position year-over-year, with net assets increasing from £243 to £33,835 and net current assets moving into a positive £9,736.
• No overdue accounts or confirmation statements, indicating good compliance with regulatory requirements.
• The business operates in tax consultancy, a service sector with steady demand and relatively low capital intensity.
• The director is a qualified tax accountant, aligning professional expertise with company activities.
• Presence of prepayments and accrued income suggests some level of ongoing business activity and forward revenue recognition.

4. Due Diligence Notes:

• Verify the nature and liquidity of prepayments and accrued income to confirm they can support short-term obligations.
• Review the company’s cash flow statements or bank statements (if available) to assess operational cash generation and liquidity.
• Confirm the sustainability of revenues and client base given the company’s infancy and single-director structure.
• Investigate any contingent liabilities or off-balance-sheet commitments not shown in the micro-entity accounts.
• Consider the impact of reliance on one individual for business continuity and governance.