Company Number: 13623805

Analysis Date: 2025-07-29 18:26 UTC

1. Risk Rating: MEDIUM
   The company shows a materially diminished net asset position in its latest financial year compared to prior years, with net assets falling from £5,226 in 2023 to only £663 in 2024. While still positive, this sharp decline signals potential solvency and liquidity risks if the trend continues. The micro-entity status and minimal employee count limit the complexity of operations but also restrict financial resilience.

2. Key Concerns:

• Significant drop in net current assets and net assets during the latest reported year, indicating weakening financial stability.
• Very low absolute current assets (£10,800) barely exceeding current liabilities (£10,137), suggesting limited liquidity buffer.
• Heavy ownership concentration (75-100%) by a single director who also controls appointment/removal of directors, raising governance and succession risk.

3. Positive Indicators:

• The company remains active and compliant with filing deadlines, with no overdue accounts or confirmation statements, indicating good regulatory compliance.
• The business employs only one person, reflecting low fixed personnel costs, which could aid operational flexibility.
• The company is classified as a micro-entity, enabling simplified filing and possibly lower administrative burdens.

4. Due Diligence Notes:

• Investigate reasons behind the sharp decline in net assets and working capital in the latest year; assess if this is a one-off event or indicative of ongoing financial stress.
• Review cash flow statements and creditor payment terms to evaluate liquidity management and short-term solvency more thoroughly.
• Examine the concentration of control and any related party transactions or conflicts of interest given the sole shareholder/director status.
• Confirm the nature and sustainability of revenue streams within the SIC code 9100 (support activities for petroleum and natural gas mining), considering sector-specific risks.