Company Number: 13499543

Analysis Date: 2025-07-20 15:39 UTC

1. Risk Rating: LOW
   The company demonstrates a strong net current asset position with improving equity and no overdue filings. Cash reserves are healthy relative to current liabilities, indicating good short-term liquidity and an absence of immediate solvency concerns.

2. Key Concerns:

• Moderate concentration of control: The sole significant controller holds 75-100% of shares and voting rights, which may present governance risks or succession challenges.
• Recent intangible asset amortisation: The company’s intangible assets have been amortised by 50% in the latest year, which may affect future profitability and requires monitoring.
• Relatively small share capital (£128.10) may limit financial flexibility and external investment capacity.

3. Positive Indicators:

• Net current assets increased substantially from £18.6k (2022) to £84.6k (2023), reflecting improved working capital management.
• Cash balance grew to £234,889 as of 31 December 2023, providing a strong liquidity buffer against short-term liabilities of £330,913.
• Regular and timely filing of accounts and confirmation statements, with no overdue returns or penalties noted.
• Growing retained earnings from £32,458 to £91,489 in one year, signaling accumulated profitability or capital injections.
• The company is active in a technology-driven sector (SIC 62090) with a clear commercial website and professional presentation.

4. Due Diligence Notes:

• Review detailed income statement and cash flow information (not filed publicly due to small company exemption) to confirm operational profitability and cash generation.
• Assess contract terms and credit risk associated with trade debtors (£179k), ensuring collectability and turnover quality.
• Investigate the nature and amortisation policy of intangible assets to understand impact on earnings and asset quality.
• Evaluate governance arrangements given the high concentration of ownership and directorship in a single individual.
• Confirm no contingent liabilities or off-balance sheet risks exist that could impact solvency.
• Verify pension scheme obligations and lease commitments briefly mentioned to understand fixed cost commitments.