Company Number: 13264085

Analysis Date: 2025-07-20 18:55 UTC

1. Risk Rating: MEDIUM
   Justification: The company shows net positive assets and shareholder funds that have increased over the years, indicating some growth in equity. However, there is a concerning increase in long-term creditors and a significant decline in current assets in the latest year, which may signal liquidity constraints. The small size and micro-entity reporting regime limit available financial details.

2. Key Concerns:

• Liquidity Risk: Current assets dropped from £51,902 in 2023 to £28,048 in 2024, while current liabilities data is inconsistent (notes show creditors within one year at -£17,834 but longer-term creditors at -£28,455), raising questions about short-term cash flow sufficiency.
• Increasing Long-term Liabilities: Creditors due after more than one year rose from £45,256 in 2023 to £28,455 in 2024 (note: appears to have decreased but likely reclassification or partial repayment—requires clarification). The presence of material long-term debt for a micro-entity could imply financial strain or reliance on external funding.
• Limited Financial Transparency: As a micro-entity, the company submits minimal disclosures without profit and loss details, cash flow, or detailed notes, which restricts thorough assessment of operational performance and sustainability.

3. Positive Indicators:

• Growing Shareholders’ Funds: Equity increased notably from £1,152 in 2023 to £15,904 in 2024, suggesting retained earnings or capital injections supporting solvency.
• No Filing Delinquencies: All statutory filings are up to date, indicating good compliance and governance practices.
• Stable Operational Headcount: The average employee count remains steady at 1, consistent with a micro-business model and controlled overhead.

4. Due Diligence Notes:

• Obtain full profit and loss accounts and cash flow statements to evaluate profitability and cash generation capabilities.
• Clarify the nature and terms of the creditors falling due after more than one year to understand repayment obligations and potential refinancing risks.
• Investigate reasons behind the substantial reduction in current assets and whether this impacts working capital management.
• Review director background and any related party transactions given the sole director’s control and small scale of the company.
• Assess client base, order book, and market conditions in the builders’ carpentry and joinery sector for sustainability outlook.