Company Number: 12520344

Analysis Date: 2025-07-20 11:51 UTC

1. Risk Rating: LOW to MEDIUM
   The company shows positive net assets and net current assets for the latest financial year with no overdue filings. However, it is a micro-entity with relatively modest financial scale and some reliance on director loans, which introduces moderate risk.

2. Key Concerns:

• Director Loans: The company has a director loan balance of £6,986 repayable on demand, indicating reliance on related party funding that could affect liquidity if not repaid.
• Small Scale and Limited Capital: Share capital is only £2, and the company is micro-sized with limited fixed assets (£21), which may constrain growth and financial resilience.
• Fluctuating Working Capital: Net current assets have improved recently (£12,818 in 2024 vs £5,076 in 2023) but showed a negative position in 2021, suggesting some past liquidity challenges.

3. Positive Indicators:

• Positive Net Assets and Working Capital: The company reported net assets of £8,179 and a healthy net current asset position as of the 2024 year-end.
• Compliance and Timely Filings: No overdue accounts or confirmation statements, indicating good regulatory compliance.
• Stable Management: Both directors have been in place since incorporation, suggesting operational continuity.

4. Due Diligence Notes:

• Review terms and security of director loans to assess potential repayment risk and impact on liquidity.
• Obtain management accounts or cash flow forecasts to evaluate ongoing operational cash flow and sustainability.
• Clarify any contingent liabilities or off-balance sheet risks not evident in micro-entity accounts.
• Verify client base and contract stability given the niche architectural services sector (SIC 71111).
• Consider the limited asset base and small employee count (average 2) in assessing operational scalability.