Company Number: 13033971

Analysis Date: 2025-07-29 18:03 UTC

1. Risk Rating: LOW
   The company demonstrates positive net assets, manageable current liabilities relative to current assets, and no overdue filings, suggesting a relatively low risk of insolvency or liquidity issues at present.

2. Key Concerns:

• Decreasing current assets: Current assets declined from £78,638 in 2022 to £56,795 in 2023, which may suggest tightening liquidity or reduced cash flow.
• Provision for liabilities remains notable at £5,163, which could indicate contingent or future obligations requiring careful monitoring.
• Very small scale operation: With only one employee and micro-entity status, operational risks related to business scalability and dependency on key personnel may be elevated.

3. Positive Indicators:

• Shareholders’ funds increased from £39,789 (2022) to £41,577 (2023), indicating retained earnings or equity growth.
• Current liabilities have decreased substantially from £25,437 in 2022 to £7,950 in 2023, improving working capital.
• Filing compliance is up to date with no overdue accounts or confirmation statements, reflecting good regulatory governance.
• The company operates in architectural activities (SIC 71111), a specialized professional service sector with potential for steady demand.

4. Due Diligence Notes:

• Review detailed composition of current assets to assess liquidity quality (e.g., cash versus receivables or inventory).
• Investigate the nature and timing of provisions for liabilities to understand potential financial impact.
• Assess client concentration and contract pipeline to gauge operational sustainability given the micro scale and single employee headcount.
• Confirm director’s background and any related party transactions given sole directorship status.
• Verify whether the company has sufficient cash flow to support ongoing operations and any planned growth.