Company Number: 13086924

Analysis Date: 2025-07-20 13:02 UTC

1. Risk Rating: MEDIUM
   The company shows improving net assets and working capital but still has some liabilities and provisions that warrant caution. The business is active and filing is up to date, which reduces regulatory risk. However, financial leverage and ongoing deferred tax provisions introduce moderate solvency and liquidity concerns.

2. Key Concerns:

• Moderate current liabilities (£74,564) relative to current assets (£101,673) with some reliance on trade debtors (£40,456) that may affect short-term liquidity.
• Presence of deferred tax liabilities (£6,809) and hire purchase secured debt (£11,609) increases financial obligations beyond immediate liabilities.
• The company is relatively young (incorporated in 2020), with a history of negative net current assets in prior years, suggesting early-stage operational risks and potential volatility in cash flow.

3. Positive Indicators:

• Net assets improved significantly to £38,556 in 2023 from £3,066 in 2022, indicating strengthening equity base.
• Positive net current assets (£27,109) in the latest year, showing improved short-term liquidity compared to previous years.
• Directors have maintained timely filing of both accounts and confirmation statements, indicating good compliance and governance practices.
• Tangible fixed assets increased to £27,236 with additional investments, suggesting ongoing business development and asset base expansion.

4. Due Diligence Notes:

• Review the aging and collectability of trade debtors (£40,456) to assess liquidity risk from receivables.
• Investigate the nature and timing of deferred tax liabilities and provisions to understand potential future cash outflows.
• Evaluate the terms and repayment schedule of the hire purchase contracts secured against assets to confirm impact on cash flow and solvency.
• Examine profitability trends and cash flow statements (not provided) to verify operational sustainability beyond balance sheet metrics.
• Consider the implications of recent name changes and the company’s strategic focus in the manufacturing sector (SIC 16230) for business continuity.