Company Number: 14717776

Analysis Date: 2025-07-29 20:19 UTC

1. Risk Rating: MEDIUM
   The company shows growth in net assets and current assets, indicating some financial strength, but the significant increase in current liabilities and bank overdraft raises liquidity concerns. As a relatively new company (incorporated 2023), its operational track record is limited, which adds to uncertainty. No overdue filings or governance issues are apparent.

2. Key Concerns:

• Sharp increase in current liabilities from £6,556 to £51,977 within one year, particularly the rise in taxation/social security and bank loans/overdrafts (£19,411). This may pressure short-term liquidity.
• Heavy reliance on trade debtors (£58,617), which may affect cash flow if collections are delayed or defaulted.
• Limited history and small scale (micro/small company), making sustainable operational performance and resilience harder to assess.

3. Positive Indicators:

• Net current assets improved substantially from £6,472 to £33,897, reflecting an overall stronger working capital position.
• Net assets and shareholders’ funds increased from £10,474 to £37,346, suggesting retained earnings and capital growth.
• No overdue statutory filings or compliance issues noted; directors appear in good standing with no disqualifications.
• The company operates in a specialized design sector with an active website and digital presence, supporting commercial viability.

4. Due Diligence Notes:

• Review detailed cash flow statements (not provided) to assess the timing and quality of debtor collections and ability to service short-term liabilities.
• Investigate the nature of the increased taxation and social security liabilities to confirm they are accurate and sustainable.
• Examine the terms and conditions of bank loans and overdrafts for covenant risk or potential refinancing needs.
• Assess the client base and contract pipeline to evaluate revenue sustainability given the company’s young age.
• Confirm director(s) background and any related party transactions (noting a minor loan to related parties) for potential conflicts of interest.