Company Number: 14555414

Analysis Date: 2025-07-20 11:32 UTC

1. Risk Rating: HIGH
   Justification: The company shows a very low asset base with minimal net assets (£100 as of 2024), no current assets at year-end 2024, and a significant decline in turnover from £42,380 in 2023 to £24,736 in 2024. There are no employees, and the company operates as a micro entity with minimal financial buffers, indicating limited capacity to meet obligations or absorb financial shocks.

2. Key Concerns:

• Liquidity Deficiency: Current assets dropped to zero in 2024, suggesting potential cash flow issues or inability to cover short-term liabilities if any arise.
• Declining Revenue Trend: Turnover has nearly halved in 2024 compared to 2023, which may reflect operational challenges or reduced market demand.
• Low Capitalization and Net Assets: Net assets have reduced sharply from £1,675 in 2023 to £100 in 2024, indicating erosion of equity and financial fragility.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statements are filed on time, indicating compliance with statutory obligations.
• Profitability Maintained: Despite revenue decline, the company reported a small profit (£1,060 in 2024), showing some operational sustainability at current scale.
• Change in Control and Management: Appointment of a new director with an accounting background could strengthen financial oversight and governance.

4. Due Diligence Notes:

• Investigate Cash Flow Position: Detailed cash flow statements or bank statements would clarify liquidity status given zero current assets reported in 2024.
• Explore Revenue Decline Causes: Understand market conditions, client retention, and business model viability impacting turnover.
• Assess Director and PSC Interests: Both directors appear to hold significant control; verify any related party transactions or conflicts of interest.
• Confirm Off-Balance Sheet Items: Although none reported, confirm no contingent liabilities exist that could impact solvency.