Company Number: 13287712

Analysis Date: 2025-07-20 13:40 UTC

1. Risk Rating: LOW to MEDIUM
   The company shows positive net assets and growth in net worth over recent years, indicating solvency. However, the extremely narrow net current assets (£274) as of the latest accounts signals very limited short-term liquidity buffer, which is a concern. The low share capital and micro-entity status limit the scale of financial information available, so some caution is warranted.

2. Key Concerns:

• Liquidity Risk: Net current assets have drastically declined from £3,281 in 2023 to only £274 in 2024, indicating tight working capital and potential cash flow constraints in meeting short-term liabilities.
• Limited Financial Disclosure: As a micro-entity, the company files abbreviated accounts with minimal detail, restricting comprehensive analysis of profitability, cash flow, and debt structure.
• Concentration of Control: The majority shareholder (Xxxxxx Xxxxxxxxname shown to subscribers) holds 75-100% of shares and voting rights, concentrating decision-making power which could pose governance risks if not balanced.

3. Positive Indicators:

• Increasing Net Assets: Shareholders’ funds have more than doubled from £7,338 in 2023 to £16,277 in 2024, suggesting accumulation of retained earnings or asset revaluation.
• No Overdue Filings: The company is current on both accounts and confirmation statement filings, indicating compliance with statutory requirements.
• Growth in Workforce: The average number of employees doubled from 2 to 4 in the latest year, which may imply business expansion or increasing operational capacity.
• Diverse SIC Codes: Operations span IT consultancy and motor vehicle sales (both new and used), potentially providing diversified revenue streams.

4. Due Diligence Notes:

• Obtain detailed management accounts or cash flow statements to assess liquidity beyond the balance sheet snapshot.
• Review contracts, customer base, and revenue trends to evaluate operational sustainability given the micro-entity status.
• Investigate the nature and valuation of fixed assets (£16k) to confirm they are appropriately recorded and not overstated.
• Confirm related party transactions and governance structures due to significant shareholder concentration.
• Assess whether the business model and diversification into IT consultancy and motor vehicle sales are coherent and sustainable.