Company Number: 13613460

Analysis Date: 2025-07-20 12:31 UTC

1. Risk Rating: MEDIUM
   The company shows a material decline in net assets and net current assets during the most recent financial year, which signals increased solvency and liquidity risk. However, the company remains active with filings up to date and limited liabilities relative to assets, mitigating immediate high risk.

2. Key Concerns:

• Significant drop in net current assets from £22,628 in 2023 to £941 in 2024, indicating tightening liquidity and potential cash flow pressures.
• Decrease in net assets from £32,461 to £11,869 year on year, which may reflect operational losses or increased liabilities.
• Current liabilities increased markedly from £92,020 to £138,901, intensifying short-term financial obligations that may stress working capital.

3. Positive Indicators:

• The company remains active with no overdue filings, suggesting compliance and governance diligence.
• Cash balance increased from £39,623 to £63,942, providing some buffer for liquidity despite the overall narrow net current assets.
• Tangible fixed assets have grown modestly, indicating some ongoing investment in operational capacity.

4. Due Diligence Notes:

• Investigate the causes of the sharp increase in current liabilities and the corresponding drop in net current assets. Identify if this is due to trade payables, accruals, or other short-term borrowings.
• Review profit and loss account details (not filed publicly) to determine if the decline in net assets is driven by operational losses or other factors.
• Confirm the nature and collectability of debtors (£75,900) given the high proportion to cash and liabilities, to assess quality of receivables and potential liquidity risk.
• Assess the sustainability of the business model given the low employee count (1) and whether the company relies heavily on external finance or owner funding.
• Verify if there are any contingent liabilities or off-balance sheet obligations impacting financial stability.