Company Number: 12870735

Analysis Date: 2025-07-29 15:23 UTC

1. Risk Rating: LOW
   The company demonstrates improving financial health with positive net assets, increasing shareholders' funds, and no overdue filings. The micro-entity accounts show sufficient working capital and no signs of immediate solvency or liquidity distress.

2. Key Concerns:

• Accruals and Deferred Income Growth: Significant increase in accruals/deferred income from £2,200 (2023) to £14,200 (2024) may indicate revenue recognition timing issues or future obligations that should be clarified.
• Small Scale Operations: With only two employees and micro-entity status, operational scalability and revenue diversification may be limited, impacting long-term sustainability.
• Limited Financial Disclosure: Micro-entity filing exemptions mean detailed profit and loss or cash flow data is unavailable, restricting full assessment of operational cash flows and profitability.

3. Positive Indicators:

• Increasing Net Assets & Shareholders’ Funds: Net assets rose from £18,896 (2023) to £28,778 (2024), indicating strengthened equity base.
• Strong Working Capital Position: Net current assets improved to £25,493 in 2024 from £19,726 in 2023, reflecting good short-term liquidity.
• Timely Compliance: All statutory filings including accounts and confirmation statements are up to date, suggesting sound governance practices.
• Active Website & Clear Business Focus: Website activity and business description align with management consultancy services, supporting business legitimacy.

4. Due Diligence Notes:

• Review the nature and timing of the significant increase in accruals and deferred income to understand revenue recognition policies and any deferred liabilities.
• Obtain profit and loss and cash flow statements (if possible) to assess operational profitability and cash generation.
• Investigate dependency on key personnel and client concentration risks given the very small team size.
• Confirm no director disqualifications or adverse regulatory actions beyond the data provided.
• Understand the business model sustainability and growth strategy within the management consultancy sector.