Company Number: 13288022

Analysis Date: 2025-07-20 16:28 UTC

1. Risk Rating: LOW
   The company demonstrates a positive net asset position, healthy cash reserves, and no overdue statutory filings. Its financials indicate sufficient working capital and solvency within the reporting period.

2. Key Concerns:

• Declining Net Assets: Net assets decreased from £24,323 in 2023 to £19,554 in 2024, indicating some erosion of equity.
• Reduction in Debtors: Debtors fell significantly from £35,887 to £6,942, which could reflect changes in revenue recognition or collection patterns needing clarification.
• Single Director and Employee: The company operates with only one director and one employee, which may pose operational risks and limit business continuity.

3. Positive Indicators:

• Strong Cash Position: Cash increased markedly from £8,793 to £33,016, enhancing liquidity and ability to meet short-term obligations.
• Positive Net Current Assets: The company maintains a comfortable net current assets position (£18,521), indicating good short-term financial health.
• Compliance: All accounts and confirmation statements are filed on time with no overdue status or penalties, reflecting good governance.

4. Due Diligence Notes:

• Investigate reasons behind the decrease in net assets and whether this trend is expected to continue.
• Clarify the cause of the reduction in debtors and assess the quality of receivables.
• Confirm the sustainability of operations given only one employee and director, and understand contingency plans for operational risk.
• Review the director’s disclosures and the company’s tax position, as no tax provisions or liabilities are explicitly noted.
• Consider obtaining management accounts or forecasts to assess trading performance beyond the balance sheet snapshot.