Company Number: 14022070

Analysis Date: 2025-07-29 15:16 UTC

1. Risk Rating: MEDIUM
   The company shows a modest positive net asset position in the most recent financial year after reporting negative equity previously. However, the balance sheet reflects some financial strain with significant liabilities and a low level of fixed assets. Being a micro-entity with limited financial disclosures, the risk is moderate due to the small scale and limited financial history.

2. Key Concerns:

• Equity Recovery From Negative Position: The company moved from negative shareholders' funds (£-1,956 in 2023) to a slight positive net asset position (£502 in 2024), which warrants investigation to understand the drivers and sustainability of this turnaround.
• High Long-Term Liabilities: Creditors due after one year remain significant (£6,720 in 2024), indicating reliance on longer-term external financing which could pressure cash flows if not managed prudently.
• Limited Asset Base and Scale: Fixed assets are minimal (£1,231), and the company operates with only 2 employees, suggesting a very small operational footprint that might limit resilience and scalability.

3. Positive Indicators:

• Improved Net Current Assets: The net current assets remain positive and relatively stable (£5,991 in 2024), indicating the company manages its short-term obligations effectively.
• Timely Filing and Compliance: Neither accounts nor confirmation statement filings are overdue, reflecting good regulatory compliance and governance practices.
• Clear Ownership and Control: Two named individuals hold significant control with clear voting rights, which may facilitate decisive management and strategic direction.

4. Due Diligence Notes:

• Review the detailed notes or management commentary behind the turnaround in net assets from 2023 to 2024 to assess the sustainability of profitability or capital injections.
• Investigate the nature and terms of the long-term creditors to understand repayment schedules and any covenants affecting financial flexibility.
• Examine cash flow statements or bank facilities (if available) to evaluate liquidity risks beyond balance sheet snapshots given the micro-entity reporting limitations.
• Confirm operational status and business model viability given the micro scale and limited fixed assets in a manufacturing sector (prepared pet foods).
• Verify the background and track record of the directors and persons with significant control for any compliance or governance risks.