Company Number: 13277001

Analysis Date: 2025-07-20 18:17 UTC

1. Risk Rating: HIGH
   The company's financial data indicate a very low level of current assets and net assets as of the latest year end, with a dramatic drop in turnover and cash balances. This raises significant concerns over its ability to meet short-term liabilities and sustain operations.

2. Key Concerns:

• Declining Turnover and Cash Reserves: Turnover decreased from £35,375 in 2023 to £13,791 in 2024; cash dropped from £809 to £15, which signals potential liquidity difficulties.
• Minimal Net Assets: Net assets fell sharply from £365 in 2023 to just £12 in 2024, suggesting erosion of capital and weak financial resilience.
• Single Director and Employee: The company has one director who is also the sole employee, which may limit operational capacity and pose governance risks.

3. Positive Indicators:

• No Overdue Filings: Accounts and confirmation statements are up to date with no overdue filings, reflecting compliance with statutory requirements.
• Operating Profit Reported: Despite low turnover, the company reported a small operating profit (£14) in 2024, indicating some control over costs.
• No Indication of Insolvency Proceedings: The company is active and not in liquidation, administration, or receivership as of the latest data.

4. Due Diligence Notes:

• Investigate the cause of the sharp turnover and cash decline in the most recent financial year and assess current cash flow and working capital position.
• Review the business model and customer base to evaluate operational sustainability given the low scale of operations and income.
• Confirm director's plans for business continuation or turnaround and any external financing arrangements or contingencies.
• Assess any contingent liabilities or off balance sheet exposures not disclosed in the accounts.
• Verify the director’s background and capacity to manage the company effectively given sole control.