Company Number: 13241162

Analysis Date: 2025-07-20 12:59 UTC

1. Risk Rating: MEDIUM
   The company demonstrates modest profitability and positive net assets, but the presence of significant long-term liabilities and low turnover relative to liabilities warrants caution.

2. Key Concerns:

• Long-Term Liabilities: The company has £7,000 in creditors due after more than one year, which is substantial relative to its net assets of £1,567, indicating leverage that may pressure solvency if cash flows weaken.
• Modest Turnover and Margins: With turnover under £32,000 and profit margins under 3%, the company operates on a very small scale, limiting financial flexibility and resilience.
• No Employees and Limited Operating Scale: The company has reported zero employees, suggesting reliance on directors or contractors, which may impact operational stability and growth potential.

3. Positive Indicators:

• Consistent Profitability: The company recorded small but positive profits (£794 in 2024), demonstrating operational viability at its scale.
• Improved Working Capital: Net current assets improved significantly from £1,354 in 2023 to £3,469 in 2024, improving short-term liquidity.
• Timely Filing and Compliance: Accounts and confirmation statements are up to date with no overdue filings, indicating good regulatory compliance.

4. Due Diligence Notes:

• Investigate the nature and terms of the £7,000 long-term creditors to assess repayment risk and impact on solvency.
• Review cash flow statements or bank details (not provided) to confirm liquidity beyond balance sheet figures.
• Clarify business operations given the zero employee count and small turnover to understand sustainability and growth prospects.
• Confirm absence of contingent liabilities or off-balance-sheet exposures, although none are declared.
• Verify director background and governance practices given sole director status.