Company Number: 13910775

Analysis Date: 2025-07-20 15:19 UTC

1. Risk Rating: MEDIUM
   The company shows some weaknesses in liquidity and working capital, but remains operational and compliant with filing deadlines. The modest negative net current assets position is a concern, though net assets and equity have improved year on year.

2. Key Concerns:

• Negative net current assets for the last two years (£3,678 in 2024, £9,340 in 2023), indicating short-term liquidity pressure and potential difficulty meeting current liabilities.
• Low cash balances relative to current liabilities (£4,185 cash vs. £8,913 liabilities in 2024), suggesting tight cash flow management is required.
• Small scale of operations (3 employees, modest asset base) and limited financial history (incorporated 2022), implying business sustainability and growth prospects are uncertain.

3. Positive Indicators:

• Timely filing of accounts and confirmation statements with no overdue returns or penalties, reflecting regulatory compliance and good governance.
• Improvement in shareholders’ funds from £1,348 in 2023 to £4,338 in 2024, indicating some retained earnings accumulation or capital injection.
• Majority ownership and control by a single director/PSC, which can enable swift decision-making and operational control.

4. Due Diligence Notes:

• Investigate cash flow forecasts and working capital management to assess ability to meet short-term obligations and avoid liquidity crises.
• Review revenue trends, profitability metrics, and client base stability to evaluate operational sustainability beyond balance sheet snapshots.
• Confirm absence of contingent liabilities, related-party transactions, or director loans that may impact financial health.
• Understand plans or strategy for improving negative net current assets and scaling the business.
• Verify director’s capacity and background given sole involvement in management and ownership.