Company Number: 14225253

Analysis Date: 2025-07-20 12:54 UTC

1. Risk Rating: MEDIUM
   The company is a micro-entity incorporated recently (2022), with limited financial history. The latest accounts show a decline in net assets and increased current liabilities that exceed current assets, indicating potential liquidity pressure despite positive net assets overall. The small scale and singular director structure add operational concentration risk.

2. Key Concerns:

• Liquidity Risk: The company’s current liabilities (£10,774) significantly exceed current assets (£467) for 2024, resulting in negative net current assets (-£10,307), which signals potential short-term cash flow constraints.
• Declining Net Assets: Net assets decreased from £2,743 in 2023 to £672 in 2024, indicating erosion of equity and potential financial strain.
• Single Director and Shareholder: The company is wholly owned and controlled by one individual, which concentrates operational and governance risk, potentially impacting decision-making and oversight.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statement filings are up to date, showing compliance with regulatory requirements.
• Stable Operational Base: The company maintains tangible fixed assets that have increased, suggesting investment in operational capability, which may support future growth.
• Micro-Entity Status: This simplifies reporting and could reduce administrative burden and costs.

4. Due Diligence Notes:

• Cash Flow Analysis: Investigate cash flow statements or bank transaction histories to confirm liquidity position and ability to meet short-term obligations.
• Revenue and Profitability Trends: Obtain detailed turnover and profit/loss data beyond the micro-entity summary to assess operational sustainability and growth prospects.
• Director Background Check: Review the professional background and creditworthiness of the sole director/shareholder, including any undisclosed liabilities or risks.
• Nature and Terms of Creditors: Understand the composition and maturity of current liabilities to evaluate repayment risk and creditor relationships.
• Business Model Viability: Clarify the company’s revenue model and client pipeline, especially given the industry classification in web portals and video production, to assess future operational stability.