Company Number: 14252875

Analysis Date: 2025-07-20 14:11 UTC

1. Risk Rating: LOW
   The company demonstrates a solid net asset position with positive net current assets and increasing shareholders' funds. It is current with statutory filings and shows no indications of insolvency or liquidation. The financial data reflects operational continuity and adequate liquidity.

2. Key Concerns:

• Modest scale of operations: The company is very small, reflected in nominal fixed assets and limited share capital, which may limit resilience to market shocks.
• Tax and VAT liabilities: Current liabilities include significant tax and VAT amounts (£24,934 and £13,152 respectively), which require consistent cash flow management to avoid regulatory issues.
• Absence of income statement: The income statement is not filed (per small companies exemption), limiting insight into profitability and operational cash flow trends.

3. Positive Indicators:

• Positive net current assets of £56,048 and net assets of £56,191 indicate that current liabilities are well covered by current assets.
• Increasing cash balance from £81,149 to £94,055 year-on-year suggests improving liquidity.
• Timely filing of accounts and confirmation statements indicates good regulatory compliance and governance.
• Directors hold significant ownership and control, likely aligning management incentives with company performance.
• The company operates in electricity trade (SIC 35140), a generally stable sector with ongoing demand.

4. Due Diligence Notes:

• Review detailed cash flow statements if available to assess operational cash generation and sustainability beyond balance sheet snapshots.
• Investigate the nature and timing of tax and VAT liabilities to ensure these are being managed effectively and there are no outstanding compliance risks.
• Ascertain the impact of small scale and limited fixed assets on operational capacity and growth potential.
• Confirm the absence of director disqualifications or adverse historical governance issues beyond what is publicly available.
• Evaluate contracts and customer base to understand revenue stability and exposure to market fluctuations.