Company Number: 13120170

Analysis Date: 2025-07-19 12:44 UTC

1. Risk Rating: MEDIUM
   The company shows a positive net asset position and net current assets which indicates solvency at the balance sheet date. However, there is a notable decrease in net assets from £62,034 in 2023 to £46,080 in 2024, and a significant increase in accruals and deferred income which may signal timing or cash flow pressure. The company is micro-sized and relatively young (incorporated 2021), which increases operational risk due to limited track record.

2. Key Concerns:

• Declining net assets: A reduction of approximately 26% year-on-year with no detailed explanation available.
• Increasing accruals and deferred income (£24,225 in 2024 vs. £985 in 2023), which may indicate liabilities or income recognition timing issues impacting liquidity.
• Small share capital (£100) and micro-entity status may limit financial flexibility and access to capital.

3. Positive Indicators:

• Healthy net current assets (£32,967 in 2024) exceeding current liabilities, suggesting short-term obligations are covered.
• Growth in fixed assets from £26,520 (2023) to £41,491 (2024) could indicate investment in operational capacity.
• Increasing employee count from 3 to 5 suggests business expansion or increased operational activity.
• No overdue filings or confirmation statements, demonstrating regulatory compliance and governance discipline.
• Active company website and contact information support operational presence and market engagement.

4. Due Diligence Notes:

• Clarify the nature and cause of the significant rise in accruals and deferred income to assess if these represent potential cash flow constraints or accounting policies.
• Obtain profit and loss data (not currently provided) to evaluate operational profitability and sustainability.
• Investigate reasons for the decline in net assets and whether this is due to losses, asset write-downs, or other factors.
• Review cash flow statements and debtor aging to assess liquidity beyond the balance sheet snapshot.
• Verify director background and any potential related party transactions with Mr Henry David Lunn-Greep.
• Confirm the company’s order book or pipeline to ascertain future revenue prospects given the young operational history.