Company Number: 13119118

Analysis Date: 2025-07-20 13:58 UTC

1. Risk Rating: MEDIUM
   The company shows a marked improvement in financial position in the latest year, with positive net assets and strong cash balances, but certain aspects warrant caution. The increase in deferred tax liabilities and a significant jump in tax-related creditors suggest potential tax timing or payment issues. Limited historic financial data due to recent incorporation restricts long-term trend analysis.

2. Key Concerns:

• Tax Liabilities: Other taxation and social security creditors have risen sharply from £10.7k to £87.4k in one year, indicating possible cash flow strain or delayed tax payments.
• Concentration of Control: Two directors collectively control the majority of shares and voting rights; this may reduce governance diversity and increase risk of management entrenchment.
• Limited Historical Data: Company incorporated in 2021 with only three full years of accounts reduces visibility on consistent operational performance over economic cycles.

3. Positive Indicators:

• Strong Liquidity Position: Cash at bank increased substantially to £347k, providing a good buffer for short-term obligations.
• Growing Net Assets: Net assets surged from £44k to £293k, reflecting retained earnings and asset growth.
• No Filing Overdues: All statutory filings and accounts are up to date, indicating compliance with regulatory requirements.

4. Due Diligence Notes:

• Investigate reasons behind the significant increase in tax and social security creditors to assess future cash flow impact.
• Review the nature and sustainability of revenue streams given the SIC code of "Agents involved in the sale of a variety of goods" and the company’s website description.
• Confirm that governance structures mitigate risks from concentrated share ownership and ensure robust oversight.
• Evaluate the adequacy of provisions for deferred tax liabilities and confirm tax strategy and compliance.