Company Number: 12727771

Analysis Date: 2025-07-20 19:16 UTC

1. Risk Rating: MEDIUM
   The company demonstrates improving financial health with positive net assets in the latest year after prior losses. However, relatively high long-term liabilities and volatile net asset figures over recent years present moderate solvency and liquidity risks.

2. Key Concerns:

• Elevated long-term liabilities (£39,528 in 2024) relative to net assets (£27,815) could pressure solvency if cash flows weaken.
• Significant swings in net assets from negative (£-6,936 in 2023) to positive (£27,815 in 2024) warrant scrutiny of underlying profitability and asset valuations.
• Reliance on a small equity base (£40,000 share capital) and micro-entity reporting exemptions limit transparency and may mask operational risks.

3. Positive Indicators:

• Strong improvement in net current assets to £56,578 in 2024 from £30,552 in 2023 indicates enhanced short-term liquidity.
• The company maintains timely filings with no overdue accounts or confirmation statements, reflecting good regulatory compliance.
• Growth in average employees from 5 to 6 suggests operational expansion and possible revenue growth.

4. Due Diligence Notes:

• Review detailed profit and loss data (not filed publicly) to confirm sustained profitability driving net asset recovery.
• Investigate the nature and terms of long-term liabilities to assess repayment risk and covenant restrictions.
• Confirm the accuracy and valuation methodology of fixed and current assets, especially given material fluctuations year-on-year.
• Conduct background checks on directors for any adverse regulatory or financial conduct not apparent from current filings.