Company Number: 13130673

Analysis Date: 2025-07-20 13:11 UTC

1. Risk Rating: MEDIUM
   The company exhibits a pattern of persistent net current liabilities and negative working capital over the past four years, indicating potential liquidity challenges. However, it maintains positive shareholders' funds and is current with statutory filings, mitigating more severe solvency concerns at this stage.

2. Key Concerns:

• Consistent negative net current assets (working capital deficit) from 2021 through 2024, with the most recent year showing £-5,779, which may impair the company’s ability to meet short-term liabilities as they fall due.
• Small scale of operations reflected by micro-entity classification and only one employee, which may limit operational resilience and scalability.
• Limited share capital (£100) and relatively low asset base (£13k fixed assets), which could constrain financial flexibility and buffer against adverse business conditions.

3. Positive Indicators:

• The company is active and has filed all required accounts and confirmation statements on time, demonstrating compliance with regulatory requirements.
• Shareholders’ funds remain positive (£7,418 in 2024), indicating net assets exceed liabilities despite working capital pressures.
• The director has maintained consistent oversight since incorporation, with no indication of governance issues or director disqualifications.

4. Due Diligence Notes:

• Investigate the nature and aging of current liabilities to assess the immediacy and risk of cash flow pressures.
• Review cash flow statements and bank facilities (if any) to evaluate liquidity management and short-term financing arrangements.
• Understand business model sustainability, customer concentration, and revenue streams given the small scale and limited employee count.
• Confirm absence of related party transactions or contingent liabilities not disclosed in the micro-entity accounts.
• Assess whether the director has plans or resources to address negative working capital trends and support future growth or operational stability.