Company Number: 12424626

Analysis Date: 2025-07-20 17:47 UTC

1. Risk Rating: LOW

The company demonstrates a stable financial position with positive net assets and net current assets over the last three years. No overdue filings and maintained active status further support a low risk rating.

2. Key Concerns:

• Decline in Current Assets: Current assets decreased from £66,126 (2023) to £39,692 (2024), indicating a significant reduction in short-term resources.
• Increase in Fixed Assets: Fixed assets rose substantially from £1,916 (2023) to £35,737 (2024), which may affect liquidity if these assets are not easily convertible to cash.
• Small Scale and Limited Capital: The company remains a micro-entity with minimal share capital (£100) and only one employee, which may constrain operational scalability.

3. Positive Indicators:

• Positive Net Current Assets: Despite the decrease, net current assets remain positive at £12,114 (2024), indicating the company can cover short-term liabilities.
• Consistent Net Assets Growth: Net assets increased from £42,341 (2023) to £47,851 (2024), reflecting retained earnings or asset appreciation.
• Compliance with Filings: Accounts and confirmation statements are up to date with no overdue filings, indicating good regulatory compliance.

4. Due Diligence Notes:

• Investigate the nature and liquidity of the increased fixed assets to assess their impact on cash flow and solvency.
• Review the reasons behind the significant decrease in current assets and whether this is due to cash outflows or changes in receivables/inventories.
• Confirm the company's operational model given it has only one employee and assess sustainability and growth prospects.
• Clarify the business rationale for the recent name change from Fresh Enterprise Ltd to Aarox Construction Limited and any associated strategic shifts.