Company Number: 12894134

Analysis Date: 2025-07-29 20:41 UTC

1. Risk Rating: MEDIUM
   The company demonstrates improving net asset position and positive working capital but carries a moderate level of long-term liabilities and limited cash reserves, indicating some solvency and liquidity risk.

2. Key Concerns:

• Low Cash Reserves: Despite net current assets improving to £3,386 in 2024, cash on hand remains low at £1,681, which may pressure short-term liquidity.
• Long-Term Liabilities Growth: Creditors falling due after more than one year increased to £2,025 from £992 in 2023, signaling rising debt obligations that could affect solvency if not managed.
• Single Director and Shareholder Concentration: The company is controlled 100% by one individual who is also the sole director, which may raise governance and operational risk concerns from an investor standpoint.

3. Positive Indicators:

• Improved Financial Position: Net assets increased significantly from £502 in 2023 to £2,519 in 2024, reflecting enhanced equity and profitability.
• Positive Net Current Assets: The company shows positive net current assets (£3,386 in 2024) indicating an ability to cover short-term liabilities with current assets.
• Timely Filings and Compliance: No overdue accounts or confirmation statements, indicating good regulatory compliance and governance so far.

4. Due Diligence Notes:

• Review the nature and terms of the long-term creditors to assess repayment risks and covenants.
• Evaluate cash flow statements and forecast to confirm liquidity position beyond balance sheet snapshots.
• Investigate the business model sustainability and client contracts given the limited scale (single employee) and industry risk profile (security services).
• Confirm absence of director disqualifications or legal actions against the sole director for governance risk assessment.