Company Number: 14156326

Analysis Date: 2025-07-29 20:01 UTC

1. Risk Rating: LOW

Justification: The company has reported positive net assets (£1,468) as at 30 June 2024, improving from a negative net asset position (-£487) in the prior year. Current assets exceed current liabilities, indicating positive working capital and reasonable short-term liquidity. The company is a micro-entity with modest scale but no overdue filings or indications of insolvency.

2. Key Concerns:

• Low absolute financial scale and net assets: The company operates with very limited assets and equity, which may limit its ability to absorb unexpected losses or invest in growth.
• Narrow working capital margin: Net current assets are positive but modest (£794), which could pressure liquidity if receivables are delayed or creditors accelerate demands.
• Limited financial history and size: As a recently incorporated micro company (since 2022) with only two employees, operational stability and sustainability remain unproven over multiple economic cycles.

3. Positive Indicators:

• Improved financial position year over year with net assets increasing from negative to positive territory.
• Current assets more than cover current liabilities, indicating the ability to meet short-term obligations.
• No overdue statutory filings or compliance issues detected; company appears in good regulatory standing.
• The company is active and engaged in management consultancy (SIC 70229), a sector that can be scalable with relatively low fixed costs.

4. Due Diligence Notes:

• Review cash flow statements and profit & loss accounts if available to assess operational cash generation and profitability trends.
• Confirm the nature and collectability of current assets, particularly any trade receivables, to verify liquidity quality.
• Inquire about the business model, client contracts, and revenue pipeline to evaluate operational sustainability and growth prospects.
• Verify director backgrounds and governance practices to ensure sound management and oversight.
• Monitor future filings for continued compliance and financial performance improvements.