Company Number: 14528186

Analysis Date: 2025-07-29 13:04 UTC

1. Risk Rating: LOW

The company's financial statements indicate a modest but positive net asset position and net current assets, with no overdue filings and an active status. The company is recently incorporated (December 2022) and operating within the small companies regime, compliant with filing deadlines and governance requirements. These factors support a low risk rating at this stage.

2. Key Concerns:

• Limited financial history: The company has only operated for about one year, limiting visibility on sustainable cash flow and profitability trends.
• Modest scale: The balance sheet shows low fixed assets and relatively small working capital, which may constrain operational capacity or ability to absorb shocks.
• Concentrated ownership and management: Two directors jointly control the company and hold all PSC rights, which may pose risks if key individuals become unavailable or if governance is insufficiently robust.

3. Positive Indicators:

• Strong liquidity position: Current assets (£62.7k) exceed current liabilities (£31.7k) by a comfortable margin, indicating the company can meet short-term obligations.
• No overdue filings or compliance issues: Both accounts and confirmation statements are filed on time, demonstrating regulatory compliance and good governance.
• Going concern assumption supported: The directors confirm the accounts have been prepared on a going concern basis, and the company holds positive net assets (£31.5k).

4. Due Diligence Notes:

• Verify the nature and collectability of trade debtors (£29.8k) to confirm liquidity assumptions.
• Review detailed turnover and profit/loss figures since the profit and loss account was not filed, to assess operational profitability.
• Confirm the absence of director disqualifications or legal proceedings that could impact company stability.
• Investigate related party transactions, as £30 is owed to related parties, to ensure arm's length dealings.
• Monitor future filings and company performance as the business matures to detect emerging risks.