Company Number: 14183063

Analysis Date: 2025-07-29 17:25 UTC

1. Risk Rating: LOW
   3 County Locks Limited shows a positive net asset position with increasing shareholders' funds and net current assets over the last two reported years. The company is current on all filings and is not in liquidation, indicating good compliance and operational status.

2. Key Concerns:

• Limited operating history: Incorporated in mid-2022, the company has a short financial track record which limits assessment of long-term sustainability.
• Modest cash balances relative to current liabilities: While cash increased from £19,747 to £28,051, current liabilities also rose notably to £19,863, requiring monitoring of liquidity management.
• Lack of detailed income statement and profit/loss data due to small company filing exemptions limits insight into profitability and cash flow generation.

3. Positive Indicators:

• Shareholders’ funds grew from £16,588 to £40,434 within two years, reflecting retained earnings accumulation and a strengthening equity base.
• Net current assets remain positive (£8,188 in 2024), suggesting the company can cover short-term obligations.
• No overdue filing obligations or regulatory issues reported; accounts are up to date and prepared under appropriate accounting standards.
• Tangible fixed assets increased substantially with additions funded presumably from operations or capital injections, indicating investment in operational capacity.

4. Due Diligence Notes:

• Review detailed cash flow statements and income statements (if available beyond filleted accounts) to assess operational cash generation and profitability trends.
• Investigate the nature and terms of current liabilities, especially “other creditors” and taxation/social security balances, to evaluate potential liquidity strains.
• Confirm the director’s background and any related party transactions given the small size and director-controlled nature of the company.
• Understand the business model and revenue drivers behind SIC code 96090 to assess market stability and growth prospects for this “other service activities” classification.
• Monitor future filings for continuity in positive equity trends and timely compliance.