Company Number: NI685445

Analysis Date: 2025-07-29 19:23 UTC

1. Risk Rating: LOW to MEDIUM
   The company demonstrates positive net current assets and shareholder funds, indicating solvency. However, the decline in net assets and increased current liabilities in the latest year suggest a slight erosion of financial strength, warranting moderate caution.

2. Key Concerns:

• Declining net assets from £6,913 in 2023 to £2,640 in 2024, a significant reduction in equity value within one year.
• Increase in current liabilities from £86 (2023) to £3,071 (2024), potentially impacting short-term liquidity.
• Presence of accruals and deferred income (£300 in 2024) and prior long-term creditors (£800 in 2023) suggests timing differences in cash flows that should be monitored.

3. Positive Indicators:

• Positive net current assets in all reported years indicate the company can meet short-term obligations.
• Consistently positive shareholders’ funds and net assets, albeit declining, show ongoing equity support.
• Single director ownership with full control may enable agile decision-making and clear governance.
• No overdue filings or compliance issues; accounts and confirmation statements are up to date, reflecting good regulatory compliance.

4. Due Diligence Notes:

• Investigate causes behind the substantial drop in net assets and rise in current liabilities in the latest financial year. Review detailed notes or management commentary if available.
• Assess the company’s cash flow statement and working capital management to confirm liquidity position beyond balance sheet snapshots.
• Understand the nature and timing of accruals and deferred income to evaluate impact on cash flow and obligations.
• Confirm operational sustainability given the micro-entity status and single employee; assess revenue streams and client concentration.
• Review any related party transactions or director loans that may affect financial stability.