Company Number: 12747998

Analysis Date: 2025-07-20 18:25 UTC

1. Risk Rating: LOW
   The company demonstrates strong liquidity and solvency metrics, with net current assets and net assets increasing steadily over recent years. There are no overdue filings, and the company remains active with a clean compliance record.

2. Key Concerns:

• Limited scale: The company is small with only 2 employees and minimal fixed assets, which may constrain operational capacity and growth potential.
• Concentration risk: Only one director is listed, which may pose governance and continuity risks if that individual becomes unavailable.
• Minimal share capital: Share capital of £1.00 suggests limited equity buffer, though accumulated reserves are strong.

3. Positive Indicators:

• Robust liquidity: Cash balances are high relative to current liabilities, indicating strong ability to meet short-term obligations.
• Improving net assets: Net assets have grown from £107k in 2020 to £261k in 2024, indicating retained earnings and financial stability.
• Compliance: All statutory filings are up to date with no overdue accounts or confirmation statements.

4. Due Diligence Notes:

• Review detailed profit and loss data (not filed publicly) to confirm revenue stability and profitability trends.
• Confirm nature and sustainability of cash balances, ensuring no unusual one-off inflows.
• Assess client concentration and contractual terms to evaluate revenue risk and operational sustainability.
• Verify absence of any contingent liabilities or off-balance-sheet risks not disclosed in filed accounts.
• Understand director’s background and any potential succession plans to mitigate governance risks.