Company Number: 13992781

Analysis Date: 2025-07-20 16:57 UTC

1. Risk Rating: MEDIUM
   The company has shown a turnaround from a net current liability and negative net assets position in 2023 to a positive net current asset and net asset position in 2024, which is encouraging. However, the absolute values remain small and cash reserves limited, indicating potential vulnerability to financial stress.

2. Key Concerns:

• Limited Liquidity Buffer: Cash at year end is £4,081 against current liabilities of £1,949. While net current assets are positive, the absolute cash amount is modest and may constrain operational flexibility.
• Director Loans: The company shows a significant loan from directors (£1,408 in 2024, down from £3,999 in 2023). Dependence on director financing could pose risks if these funds are withdrawn or not renewed.
• Small Scale and Early Stage: Incorporated in 2022, with one employee and limited financial history, the company’s operational sustainability is yet to be demonstrated robustly.

3. Positive Indicators:

• Improved Financial Position: The company moved from negative net assets (£-1,029) and negative shareholders’ funds (£-1,129) in 2023 to positive net assets and shareholders’ funds (£2,132) in 2024, indicating improved financial health.
• Compliance and Timely Filings: No overdue accounts or confirmation statements; filings are up to date and compliant with requirements.
• Sole Shareholder and Director Alignment: The controlling individual (Mrs Lisa Bernadette Cooke) is also the director, suggesting clear governance and control structure.

4. Due Diligence Notes:

• Investigate the nature and terms of director loans, including repayment schedules, interest, and conditions for recall, to assess financial risk.
• Evaluate the company’s business model and revenue streams in detail, given the small scale and early stage, to ascertain operational sustainability.
• Review cash flow forecasts and working capital management to confirm the company can meet short-term obligations without additional funding.
• Confirm no undisclosed contingent liabilities or off-balance sheet risks exist.
• Assess the reason for the significant improvement in net assets from 2023 to 2024 — whether from capital injection, profit generation, or revaluation.