Company Number: 13801504

Analysis Date: 2025-07-29 19:41 UTC

1. Risk Rating: MEDIUM
   The company shows positive net assets and shareholder funds, but there are concerns regarding liquidity due to a sharp decline in current assets and persistent current liabilities. The micro-entity size limits detailed financial disclosures, restricting full assessment.

2. Key Concerns:

• Liquidity Risk: Current assets dropped from £12,428 in 2023 to £2,607 in 2024 while current liabilities remain high at £15,106, indicating potential short-term cash flow constraints.
• Declining Fixed Assets: Fixed assets decreased from £24,000 in 2021 to £15,360 in 2024, which may signal asset disposals or underinvestment in operations.
• Concentrated Control: The sole director and 75-100% shareholder is the same individual, which may raise governance and succession concerns for external investors.

3. Positive Indicators:

• Positive Net Assets: The company maintains positive net assets (£2,861 in 2024), indicating solvency on a balance sheet basis.
• No Overdue Filings: Accounts and confirmation statements are filed on time, reflecting regulatory compliance.
• Stable Workforce: The average number of employees remained steady at 2, suggesting operational consistency.

4. Due Diligence Notes:

• Investigate the reasons behind the significant drop in current assets in 2024 and whether this impacts ongoing working capital needs.
• Review cash flow statements if available to assess liquidity trends and ability to meet short-term obligations.
• Confirm whether any related party transactions or loans exist given the owner-director structure.
• Understand business model sustainability in the washing and cleaning sector, including customer base and contract terms.
• Verify no director disqualifications or adverse regulatory actions.