Company Number: 14092127

Analysis Date: 2025-07-29 13:41 UTC

1. Risk Rating: MEDIUM
   The company demonstrates modest net assets and positive net current assets, indicating some ability to meet short-term obligations. However, significant deferred income accruals and a very low fixed asset base relative to current assets suggest potential operational and cash flow constraints. The limited financial history and micro-entity status restrict detailed analysis.

2. Key Concerns:

• Significant accruals and deferred income (£4,830) reported in 2024, which may indicate revenue received in advance or liabilities unrecognized in current liabilities, potentially masking cash flow timing issues.
• Very low share capital (£1), which may limit financial buffer and shareholder equity to absorb operational shocks.
• Director and PSC concentration: The same individual controls 75-100% of shares and directs the company, presenting governance and succession risks.

3. Positive Indicators:

• Positive net current assets (£6,033 in 2024), showing that current assets exceed current liabilities, which supports short-term liquidity.
• Consistent filing of accounts and confirmation statements on time, reflecting regulatory compliance and good governance practices.
• Net assets have increased from £1,741 in 2023 to £2,133 in 2024, indicating some growth in equity base.

4. Due Diligence Notes:

• Investigate the nature and impact of the accruals and deferred income. Clarify if these are contractual liabilities or revenue recognition timing differences affecting cash flow.
• Review underlying cash flow statements and profit & loss accounts (if available) to confirm operational sustainability and working capital management.
• Assess customer concentration and contract terms, given the business support and financial management services classification.
• Evaluate director background and governance arrangements, especially given the change in directorship and PSC control concentration.
• Confirm no related party transactions or financial support risks given the single director and shareholder structure.