Company Number: 14355322

Analysis Date: 2025-07-29 17:16 UTC

1. Risk Rating: LOW
   Justification: The company demonstrates a solid net asset position relative to its size, with positive working capital and no overdue filings. It maintains adequate cash balances and appears compliant with regulatory requirements, indicating a low immediate risk to solvency or liquidity.

2. Key Concerns:

• Increasing Corporation Tax Liability: Corporation tax creditors have risen from £4,814 (2023) to £6,128 (2024), suggesting growing tax obligations that could pressure cash flow if not managed carefully.
• Dependence on Directors: The two directors also control significant shareholding (each 25-50%) and the business employs only two people, indicating operational dependency on a small management team which could pose continuity risks.
• Operating Lease Commitment: The company has a future non-cancellable lease commitment of £18,172 between one and five years, which is material relative to its current size and cash resources, potentially impacting future liquidity.

3. Positive Indicators:

• Strong Net Current Assets: Net current assets improved significantly to £6,757 in 2024 from £2,327 in 2023, indicating better short-term financial health.
• Positive Net Assets and Shareholders’ Funds: Net assets increased to £8,650 in 2024 from £2,622 in 2023, reflecting retained earnings growth and a stronger equity base.
• Up-to-date Regulatory Filings: No overdue accounts or confirmation statements, showing good compliance and governance discipline.
• Cash Position Stable: Cash balances remain stable (~£11,000), supporting liquidity.

4. Due Diligence Notes:

• Review the nature and timing of the corporation tax liabilities to confirm if these are adequately provisioned and to understand any tax planning or payment schedules.
• Assess the sustainability of revenue and profitability trends, given the company is exempt from audit and only provides limited financial statements.
• Evaluate lease terms and potential impact on cash flow, including any options for renegotiation or subletting.
• Confirm absence of any director disqualifications or legal proceedings; current directors appear to be in good standing.
• Consider obtaining more detailed management accounts to monitor cash flow and operational performance beyond the statutory filings.