Company Number: 13952984

Analysis Date: 2025-07-20 14:49 UTC

1. Risk Rating: LOW The company demonstrates solid financial metrics for a young private limited company with a net asset position more than doubling in one year, strong positive working capital at latest year end, and no overdue filings. The going concern basis is supported by the director’s statement and available cash resources.

2. Key Concerns:

• Reliance on goodwill (intangible assets of £224k) which represents a significant portion of total assets and may be subject to impairment risk.
• Current liabilities remain relatively high (£739k), requiring ongoing cash flow management to avoid liquidity pressure.
• Small employee base (5 employees) and recent incorporation (2022) may indicate operational scale and resilience are still developing.

3. Positive Indicators:

• Substantial increase in net current assets from negative £103k to positive £92k year-on-year reflects improved liquidity.
• Strong cash balances of £679k at latest year end provide a buffer for short-term obligations.
• Shareholders’ funds doubled to £335k, indicating increased equity and financial stability.
• No overdue accounts or confirmation statements, signaling good regulatory compliance.
• Director has 75-100% ownership and control, potentially facilitating decisive management.

4. Due Diligence Notes:

• Review any impairment testing or sensitivity analysis underlying the goodwill valuation, given its materiality.
• Assess the nature and timing of current liabilities to verify working capital quality and any contingent obligations.
• Examine revenue trends and profit margins (not disclosed here) to confirm sustainable operational cash flow.
• Confirm background and track record of key director(s) for governance and risk oversight.
• Verify absence of any undisclosed litigation or regulatory issues that could impair financial position.