Company Number: 13040459

Analysis Date: 2025-07-20 13:09 UTC

1. Risk Rating: LOW

The company demonstrates a solid solvency position as of the latest accounts with positive net assets and a strong net current asset position. It is current with statutory filings and has no indication of insolvency or regulatory issues.

2. Key Concerns:

• Volatility in Working Capital: The company’s net current assets have shown significant fluctuation over recent years, moving from negative to strongly positive in the latest year, which may indicate uneven cash flow or billing cycles.
• Minimal Share Capital: The share capital is nominal (£1.00), which may limit the company’s ability to raise equity quickly if needed.
• Small Scale Operation: As a micro-entity with only four employees and relatively low fixed assets, the company may be vulnerable to operational risks such as loss of key personnel or market changes.

3. Positive Indicators:

• Strong Latest Net Current Assets: The most recent year shows a healthy net current asset position (£76,058), suggesting adequate short-term liquidity.
• Increasing Net Assets: Net assets have increased substantially from prior years (£5,703 in 2022 to £81,734 in 2023), reflecting improved financial stability.
• Up-to-date Filings: Both accounts and confirmation statement filings are current with no overdue deadlines, indicating good regulatory compliance.
• Stable Management: The sole director has been in place since incorporation without any disqualifications noted.

4. Due Diligence Notes:

• Cash Flow Analysis: Review cash flow statements and payment patterns to understand working capital swings and confirm sustainability.
• Revenue and Profit Trends: Obtain P&L details to assess operational profitability and margin stability.
• Customer and Contract Base: Evaluate dependency on key clients or contracts given the small size and sector.
• Contingent Liabilities: Verify any off-balance sheet obligations or guarantees that may impact solvency.