Company Number: 14195384

Analysis Date: 2025-07-20 15:41 UTC

1. Risk Rating: MEDIUM

Justification: The company has moved from a net liability position in 2023 to a positive net asset position in 2024, indicating some improvement in financial health. However, persistent net current liabilities and low asset base relative to liabilities suggest liquidity constraints. The company is very young (incorporated mid-2022) and operates in a specialized construction niche, which may carry operational risks typical of small startups.

2. Key Concerns:

• Negative Net Current Assets: The company reported net current liabilities of £977 in 2024 and a substantially larger deficit in prior years, indicating potential cash flow pressures to meet short-term obligations.
• Small Asset Base & Limited Scale: Fixed assets and current assets remain low (£4,500 and £8,023 respectively), which may limit operational flexibility and capacity to absorb shocks.
• Frequent Director Changes & Control Concentration: Appointment and resignation of directors within a short period, along with 75-100% ownership and voting control held by a single individual (Mr. Hardeep Singh), could indicate governance risks or limited oversight.

3. Positive Indicators:

• Improved Net Asset Position: The turnaround to a positive net asset and shareholders’ funds (£3,523) in 2024 from negative in 2023 shows progress in financial stability.
• Compliance with Filings: Accounts and confirmation statements are up to date with no overdue filings, suggesting compliance with regulatory requirements.
• Micro Entity Reporting: The company benefits from micro-entity reporting exemptions, reducing administrative burden and indicating a very small scale operation aligned with its size.

4. Due Diligence Notes:

• Investigate the nature of current liabilities and whether they are trade payables, short-term loans, or other obligations to assess liquidity risk in detail.
• Review cash flow statements or bank confirmations if available to understand operational cash generation and timing of cash inflows/outflows.
• Assess the background and experience of the controlling director and the reasons behind director turnover to evaluate governance and management stability.
• Understand the company's client base and contracts to evaluate business sustainability and revenue visibility.
• Confirm no outstanding legal or regulatory actions against the company or its directors.