Company Number: 13102707

Analysis Date: 2025-07-20 14:10 UTC

1. Risk Rating: MEDIUM
   The company shows some operational continuity with positive net assets, but recent financial performance and compliance issues raise concerns.

2. Key Concerns:

• Overdue filings: Both the annual accounts (due September 2024) and confirmation statement (due January 2025) are flagged as overdue, indicating potential governance or administrative weaknesses.
• Declining financial performance: Turnover decreased from £12,470 in 2021 to £9,330 in 2022, with the company reporting an operating loss of £4,718 and a net loss of £3,834 in 2022, compared to a profit in 2021.
• Reduced liquidity: Cash reserves dropped significantly from £10,410 at the end of 2021 to £4,430 in 2022, while current liabilities remain substantial at £2,386, narrowing the working capital cushion.

3. Positive Indicators:

• Positive net assets: Despite losses, the company maintains net assets of £2,463 as of December 2022, suggesting it remains solvent on a balance sheet basis.
• Minimal borrowings: No outstanding loans or overdrafts as of 2022, reducing financial leverage risks.
• Single director with relevant professional background: The director is also the sole employee and a professional coach, which indicates focused management and potentially lower overhead costs.

4. Due Diligence Notes:

• Investigate reasons for overdue filings: Determine if these are one-off delays or symptomatic of deeper compliance or operational issues.
• Review cash flow projections and client pipeline: The decline in turnover and cash reserves requires understanding sustainability of operations and ability to generate future revenues.
• Examine related party transactions and director remuneration policies: The director received £12,000 contributions to a money purchase pension scheme in 2022, which may impact cash flow in a small company context.
• Confirm absence of undisclosed liabilities or contingent risks given limited disclosure and the small scale of operations.