Company Number: 13804567

Analysis Date: 2025-07-29 19:10 UTC

1. Risk Rating: LOW
   The company demonstrates a solid net current asset position, positive shareholders’ funds, timely filings, and no indication of distress or regulatory non-compliance, reflecting low financial and operational risk.

2. Key Concerns:

• Director's Loan Account: The director’s loan balance stood at a negative £8,616 at year-end 2023, indicating the director owes money to the company, which warrants monitoring to ensure this does not impact liquidity or create related party transaction risks.
• Limited Operating History: Incorporated in December 2021, the company has a relatively short trading history, which limits the ability to assess long-term operational stability and profitability trends.
• Single Director and PSC: The company is controlled entirely by one individual, Mr. Nigel Mark Jennett, which concentrates control risk and may impact governance and succession planning.

3. Positive Indicators:

• Strong Liquidity: Net current assets increased from approximately £19,318 in 2022 to £28,477 in 2023, indicating an improved liquidity position with current assets significantly covering short-term liabilities.
• Positive Shareholders’ Funds: The company’s equity grew from £21,405 in 2022 to £29,521 in 2023, demonstrating retained earnings growth and financial solidity.
• Compliance and Timeliness: All statutory filings, including accounts and confirmation statements, are up to date with no overdue filings or penalties reported.
• Micro-entity Reporting: The company benefits from simplified reporting requirements, reducing administrative burden and potential compliance complexity.

4. Due Diligence Notes:

• Review the nature and terms of the director’s loan account transactions to assess any potential financial or governance risks.
• Obtain detailed profit and loss information to understand revenue streams, profitability, and operational sustainability beyond balance sheet strength.
• Evaluate the business model and client base to confirm ongoing viability, given the company’s classification under SIC 72190 (other research and experimental development on natural sciences and engineering).
• Confirm if any external financing or contingent liabilities exist that are not reflected in the micro-entity accounts.
• Assess the governance framework, including any plans for broadening the management team or PSC structure to mitigate single-person control risks.