Company Number: 13176618

Analysis Date: 2025-07-29 12:10 UTC

1. Risk Rating: HIGH
   The company exhibits significant liquidity concerns with persistent net current liabilities and very low current assets relative to current liabilities. The micro-entity size and minimal fixed assets further limit financial resilience.

2. Key Concerns:

• Negative net current assets worsening from -£445 (2023) to -£2,098 (2024), indicating potential short-term cash flow difficulties.
• Very low current assets (£233 in 2024) compared to current liabilities (£2,331), raising solvency risk.
• Sole director and 100% shareholder concentration may pose governance risks and limit organizational stability.

3. Positive Indicators:

• The company is up-to-date with statutory filings and not overdue on accounts or confirmation statements, reflecting compliance discipline.
• Steady net assets around £800, albeit low, show some retained equity buffer.
• The business operates in IT consultancy (SIC 62020), a sector with growth potential and low capital intensity.

4. Due Diligence Notes:

• Investigate the nature and timing of current liabilities and whether there are any overdue payments to suppliers or creditors.
• Review cash flow statements or management accounts to assess working capital management and incoming cash flows given low current assets.
• Confirm the business model viability given the micro-entity scale and sole director control, including client base and revenue trends.
• Check for any related party transactions or director loans that may affect financial position.