Company Number: 13517694

Analysis Date: 2025-07-20 13:32 UTC

1. Risk Rating: MEDIUM
   The company shows some solvency concerns due to net current liabilities and low net assets, but it remains active with positive cash balances and no overdue filings. The financial position indicates a fragile liquidity state but not immediate distress.

2. Key Concerns:

• Negative net current assets (£-2,269) as at 31 March 2024 suggest short-term liquidity pressure and potential difficulty meeting current liabilities on time.
• Significant increase in creditors within one year (from £26,513 to £68,689), particularly "other creditors," which may indicate growing short-term obligations or delayed payments.
• Low net assets (£1,005) and shareholders' funds, implying limited financial buffer against operational risks or unexpected expenses.

3. Positive Indicators:

• The company has improved its cash position substantially, from £24,178 in 2023 to £66,420 in 2024, which supports short-term liquidity.
• No overdue accounts or confirmation statements, indicating compliance with regulatory filing requirements.
• Directors appear stable and resident locally, with no disqualifications or governance issues noted.
• Operating in the IT consultancy sector (SIC 62020), which may offer growth opportunities and scalable revenue potential.

4. Due Diligence Notes:

• Review the composition of "other creditors" to understand the nature and terms of these liabilities and whether they are sustainable or could lead to insolvency risk.
• Investigate the company's cash flow statements and working capital management practices to confirm whether cash balances are sufficient to cover ongoing obligations.
• Assess the company's revenue trends, client base, and profitability metrics (not disclosed here) to evaluate operational sustainability and growth prospects.
• Confirm whether the provisions for liabilities (£768) include any contingent risks or potential litigation that might affect solvency.
• Validate the fixed asset valuation and depreciation policy, ensuring assets are appropriately valued and not overstated.