Company Number: 14501202

Analysis Date: 2025-07-29 12:33 UTC

1. Risk Rating: MEDIUM
   The company presents a modest net asset base and positive net current assets, indicating a basic ability to meet short-term obligations. However, a significant reduction in net assets from £12,500 (2023) to £3,224 (2024) and the presence of accruals and deferred income raise concerns about underlying financial stability. The lack of employees and limited operational data further suggest early-stage operational risk.

2. Key Concerns:

• Decline in Net Assets: A substantial decrease (~74%) in net assets over one year warrants investigation into operating losses or capital withdrawals.
• Accruals and Deferred Income (£1,320): These liabilities may indicate cash flow timing issues or unearned revenue that could affect liquidity.
• No Employees and Micro-entity Status: The absence of staff and very small scale may limit operational capacity and resilience, increasing risk if business volume grows.

3. Positive Indicators:

• Positive Net Current Assets (£4,417): Indicates the company currently holds sufficient short-term assets to cover immediate liabilities.
• No Overdue Filings: Compliance with statutory filing deadlines suggests good governance practices.
• Single Controlling Shareholder/Director: Clear control by an experienced individual (consultant occupation) can streamline decision-making and accountability.

4. Due Diligence Notes:

• Review the cause of net asset erosion in the latest financial year, including profit and loss details if available.
• Clarify the nature and timing of accruals and deferred income to assess liquidity risks.
• Understand the company’s business model, client base, and revenue generation given no employees are reported.
• Confirm the director’s background and financial commitment to support company growth and stability.