Company Number: 13107423

Analysis Date: 2025-07-20 13:39 UTC

1. Risk Rating: LOW
   Justification: The company demonstrates positive net assets and net current assets across available years. No overdue filings or compliance issues are apparent. The business appears solvent with reasonable working capital relative to liabilities.

2. Key Concerns:

• Declining net assets from £20,662 in 2022 to £12,555 in 2023, indicating potential erosion of financial strength.
• Drop in current assets from £27,481 to £16,878 year-over-year may suggest reduced liquidity.
• Very small scale of operation (micro-entity with one employee), which may limit operational resilience and growth potential.

3. Positive Indicators:

• Positive net current assets (£8,903 in 2023) indicate the company can meet short-term liabilities.
• No overdue accounts or confirmation statement filings, demonstrating regulatory compliance.
• Consistent director presence and no indication of governance or disqualification issues.
• Incremental increase in fixed assets, suggesting some reinvestment in operations.

4. Due Diligence Notes:

• Investigate reasons behind the significant reduction in current assets and net assets from 2022 to 2023.
• Review cash flow statements (if available) to assess liquidity trends and operational cash generation.
• Examine revenue and profitability trends to understand the sustainability of the business model.
• Confirm absence of contingent liabilities or off-balance sheet obligations not disclosed in micro-entity accounts.
• Assess reliance on the single director and employee for operational continuity and risk.