Company Number: 13556952

Analysis Date: 2025-07-20 18:27 UTC

1. Risk Rating: MEDIUM
   The company shows positive net asset figures throughout the reported years but exhibits a significant decline in net current assets as of the latest financial year, which could indicate tightening liquidity. The business is a micro-entity with small asset and liability bases, limiting financial resilience.

2. Key Concerns:

• Liquidity pressure: Net current assets have dropped sharply from £12,085 in 2023 to only £877 in 2024, reflecting an increase in current liabilities close to current assets, which may strain short-term cash flows.
• Declining net assets: Shareholders' funds declined from £14,885 in 2023 to £9,077 in 2024, suggesting possible operational losses or capital withdrawals that warrant further scrutiny.
• Limited financial disclosure: As a micro-entity, the company is exempt from audit and reports limited financial detail, increasing the difficulty of assessing operational stability and risk comprehensively.

3. Positive Indicators:

• Compliance and governance: All statutory filings including accounts and confirmation statements are up to date, with no overdue filings or indications of regulatory non-compliance.
• Stable workforce: The company maintains a consistent average number of employees (4), indicating operational continuity.
• Experienced management: Directors have been in place since inception or recently appointed, with no apparent disqualifications or governance red flags.

4. Due Diligence Notes:

• Investigate reasons behind the significant increase in current liabilities and what specific debts contribute to this rise.
• Review detailed profit and loss data (if available) to understand causes of decrease in shareholders’ funds and assess operational profitability or losses.
• Confirm the nature and terms of any short-term financing arrangements or creditor relationships that may affect liquidity.
• Assess the impact of industry-specific risks given the company’s activities in washing/dry-cleaning and transportation support services.
• Verify the background and track record of directors to corroborate management stability and capability.