Company Number: 12899221

Analysis Date: 2025-07-29 20:21 UTC

1. Risk Rating: LOW
   West 16th Advisory Ltd shows stable net assets and positive working capital over multiple years, with no overdue filings or indication of financial distress. The company’s micro-entity size and sole director ownership imply a straightforward operational structure with limited financial exposure.

2. Key Concerns:

• Minimal asset base and current assets (£6,132) suggest limited financial buffer if unexpected expenses arise or if cash flow is disrupted.
• Reliance on a single director and controlling shareholder (Simon Dennett) concentrates operational and governance risk.
• Lack of detailed profit and loss data limits insight into revenue generation or profitability trends, creating uncertainty about business sustainability.

3. Positive Indicators:

• Consistent positive net current assets (~£4,267) and net assets over the last three years, indicating the company can meet short-term liabilities.
• Up-to-date statutory filings with no overdue accounts or confirmation statements, suggesting compliance with regulatory requirements.
• Business classified under management consultancy SIC code 70229, a sector with relatively low capital expenditure and fixed asset needs, consistent with reported micro-entity status.

4. Due Diligence Notes:

• Verify revenue, profit/loss, and cash flow statements to better assess operational performance and sustainability.
• Confirm whether the single director shareholder structure has appropriate governance safeguards to mitigate risks of unilateral decision-making.
• Investigate business model and client base to evaluate future revenue stability, especially given the small scale of operations and limited staff (1 employee).