Company Number: 12442794

Analysis Date: 2025-07-29 16:56 UTC

1. Risk Rating: MEDIUM
   The company demonstrates positive net current assets and net asset values but has seen a significant reduction in cash and trade debtors in the latest year. The director’s current account balance swung from a large creditor position to a much smaller one, which may indicate changes in financing or withdrawals. Lack of audit and limited disclosure typical for a small company means financial transparency is limited.

2. Key Concerns:

• Sharp decline in cash from £36,184 (2023) to £13,521 (2024) raises liquidity concerns and potential cash flow volatility.
• Trade debtors dropped dramatically from £1,722 to £10, suggesting possible collection issues or reduction in credit sales.
• Director’s current account creditor balances fluctuate significantly (£24,109 to £1,598), which could imply dependency on director loans or irregular financing arrangements.

3. Positive Indicators:

• Consistent positive net current assets and net asset position indicate solvency at balance sheet date.
• The company is active and up to date on filings — no overdue accounts or confirmation statements observed.
• The company operates in a consultancy sector (SIC 70229) which typically requires low fixed assets (confirmed by minimal tangible assets), reducing financial risk associated with large capital expenditures.
• Retained earnings remain positive, and dividends paid are consistent with profits, indicating some profitability.

4. Due Diligence Notes:

• Investigate the reason for the large drop in cash and trade debtors in the latest financial year and assess ongoing cash flow stability.
• Review director’s current account transactions to understand the nature and sustainability of director loans or repayments.
• Request management accounts or cash flow forecasts to confirm liquidity over the next 12 months.
• Confirm there are no contingent liabilities or off-balance sheet risks given the relatively small provisions for liabilities and deferred tax.
• Evaluate client concentration and contract stability given the consultancy business model and small employee base (1 employee).