Company Number: 13145678

Analysis Date: 2025-07-29 20:58 UTC

1. Risk Rating: MEDIUM
   Justification: The company is active and compliant with filings, which is positive. However, there is a significant decline in net assets and net current assets in the latest financial year, indicating potential liquidity and solvency concerns that warrant monitoring.

2. Key Concerns:

• Sharp decline in net assets from £10,074 (2024) to £2,687 (2025), a reduction of approximately 73%, which may signal financial distress or operational issues.
• Net current assets have decreased markedly from £6,288 to only £157, suggesting very limited short-term liquidity to cover current liabilities.
• Share capital is minimal (£102), implying limited equity buffer for creditors and reliance on retained earnings or external financing.

3. Positive Indicators:

• The company remains active with no overdue filings, indicating good regulatory compliance and governance.
• Operating in the advertising agency sector (SIC 73110), which can be scalable and adaptable to market changes.
• Consistent employment level (average 3 employees) suggests operational continuity and stable management.

4. Due Diligence Notes:

• Investigate reasons behind the significant drop in net assets and current assets in the latest accounting period (2025). Review profit and loss data, cash flow statements, and any unusual or one-off expenses.
• Clarify the nature of current liabilities and whether any are overdue or at risk of default.
• Review director changes and any related party transactions given the resignation of one director shortly before year-end.
• Assess the company’s revenue trends and client base stability to understand operational sustainability beyond balance sheet metrics.
• Confirm there are no undisclosed contingent liabilities or pending legal actions.