Company Number: 13886121

Analysis Date: 2025-07-29 19:13 UTC

1. Risk Rating: MEDIUM
   The company shows a decline in net assets and net current assets from 2023 to 2024, with net current liabilities reported in 2024 indicating potential liquidity concerns. However, there is no indication of insolvency or overdue filings, and the sole director has full control, which may support operational continuity.

2. Key Concerns:

• Liquidity Deterioration: Current liabilities (£2,669) exceeded current assets (£1,064) in 2024, resulting in negative net current assets (-£1,605), which could impair the company’s ability to meet short-term obligations.
• Declining Net Assets: Net assets halved from £11,208 in 2023 to £5,642 in 2024, reflecting a significant reduction in financial stability within one year.
• Dependence on Single Director/PSC: Mr Thomas Goldsmith controls 75-100% of shares and voting rights. This concentration may pose governance and succession risks.

3. Positive Indicators:

• Compliance: No overdue accounts or confirmation statements; filings are up to date.
• Micro-Entity Status: The small scale of operations and micro-entity accounting reduce complexity and administrative burden.
• Business Focus: Clear SIC code (1430) aligned with equine raising, indicating a defined operational niche.

4. Due Diligence Notes:

• Investigate reasons behind the decline in current assets and net assets between 2023 and 2024, including any extraordinary expenses or asset disposals.
• Assess cash flow statements and profitability metrics (not provided) to better understand operational sustainability and liquidity management.
• Clarify the nature of current liabilities and whether any are overdue or subject to renegotiation.
• Review director’s plans for addressing liquidity shortfall and maintaining solvency.
• Confirm whether the company has any contingent liabilities or pending regulatory issues not disclosed in micro-entity accounts.