Company Number: 12678811

Analysis Date: 2025-07-20 11:25 UTC

1. Risk Rating: MEDIUM

   The company shows a positive trajectory in net assets over recent years, indicating some growth and capital accumulation. However, the presence of net current liabilities in the latest financial year and relatively minimal employee count suggest operational and liquidity constraints. The micro-entity status limits the depth of financial disclosures, which constrains a full risk assessment.

2. Key Concerns:

   • Liquidity Pressure: The company reported net current liabilities of £7,085 as of June 2024, signaling potential short-term liquidity challenges in meeting immediate obligations.
   • Concentration of Control: One director and significant shareholder (Mr. Thomas Derek Harding) holds 75-100% of shares and voting rights, which may pose governance risks or limit minority shareholder influence.
   • Limited Operational Scale: With only one employee on average and micro-entity classification, the company’s operational capacity and diversification appear limited, possibly impacting sustainability and resilience.

3. Positive Indicators:

   • Growing Net Assets: Net assets increased from £100,221 in 2023 to £156,536 in 2024, reflecting retained earnings or asset growth.
   • No Filing or Compliance Issues: Accounts and confirmation statements are up to date and not overdue.
   • Stable Director Presence: The current director has been in place since incorporation, providing continuity.

4. Due Diligence Notes:

   • Review detailed cash flow statements or bank reconciliations (if available) to assess actual liquidity and working capital management beyond the balance sheet snapshot.
   • Investigate the nature and terms of the £94,604 creditors due after one year to understand long-term liabilities and debt servicing risk.
   • Assess the company’s client base, contract stability, and revenue streams to evaluate operational sustainability given the small workforce.
   • Confirm whether any related party transactions exist given the concentrated ownership.