Company Number: 12702410

Analysis Date: 2025-07-20 17:18 UTC

1. Risk Rating: HIGH
   The company shows a marked deterioration in net current assets and net assets in the latest financial year, with net current assets slipping into negative territory (£-14) and net assets decreasing sharply to £1,238 from £3,267 the prior year. This signals potential solvency and liquidity risks.

2. Key Concerns:

• Liquidity strain: Current liabilities (£5,875) slightly exceed current assets (£5,861), resulting in negative net working capital, which may impair the company’s ability to meet short-term obligations.
• Declining financial position: Net assets have decreased significantly from previous years, indicating erosion of shareholder equity and potential operational losses or asset write-downs.
• Minimal share capital (£1) and micro-entity status suggest limited financial buffer and scale, increasing vulnerability to cash flow fluctuations or unexpected expenses.

3. Positive Indicators:

• Timely compliance: The company is current in filing both annual accounts and confirmation statements with no overdue filings, indicating regulatory adherence.
• Active trading status and presence of a single director with clear appointment details show ongoing management and governance.
• The company operates in a specialized construction sector, which may have niche market opportunities.

4. Due Diligence Notes:

• Investigate underlying causes of the sharp decline in net assets and negative working capital—review cash flow statements and profit and loss details (not filed) if available.
• Confirm if the company has any contingent liabilities or off-balance-sheet obligations not reflected in the micro-entity accounts.
• Assess director’s plans to improve liquidity and solvency, including any recent or planned capital injections, credit arrangements, or restructuring actions.
• Ascertain the company’s customer base and contract pipeline to evaluate operational sustainability given the financial stress.
• Verify whether the company retains any undetected regulatory or compliance risks beyond filing status, such as tax or health and safety matters common in construction.