Company Number: 13953114

Analysis Date: 2025-07-20 11:23 UTC

1. Risk Rating: MEDIUM
   The company demonstrates positive net current assets and shareholders’ funds but has experienced a significant reduction in net assets over the latest reporting period. Its solvency is supported by positive working capital, but declining equity and reliance on director’s loan accounts indicate moderate financial risk.

2. Key Concerns:

• Declining Net Assets: Net assets decreased from £18,317 (Feb 2024) to £5,584 (Oct 2024), signaling potential erosion of equity and profitability concerns.
• Director's Loan Liability: The presence of a director’s account creditor (£4,426) as a long-term liability suggests reliance on director funding which may not be sustainable or formalized with external financing.
• Limited Operational Scale: With only one employee and minimal tangible assets reported, the company’s operational capacity and revenue generation potential could be constrained, affecting future stability.

3. Positive Indicators:

• Positive Net Current Assets: £10,010 as of Oct 2024 indicates the company has sufficient short-term assets to cover immediate liabilities.
• No Overdue Filings: Accounts and confirmation statements are up to date, reflecting good compliance and governance practices.
• Stable Shareholder Control: The sole director and majority shareholder (75-100%) provides clear governance and decision-making authority, reducing internal conflicts.

4. Due Diligence Notes:

• Investigate the cause of the significant decrease in net assets within the latest period and review profitability trends and expense structure.
• Clarify the terms and conditions of the director’s loan account to assess repayment risk and potential impact on liquidity.
• Examine revenue streams and contracts related to the interactive leisure software development to evaluate business sustainability and growth prospects.
• Confirm the absence of contingent liabilities or off-balance sheet obligations that could impact financial health.