Company Number: 15055611

Analysis Date: 2025-07-20 13:28 UTC

1. Risk Rating: MEDIUM
   The company is newly incorporated (2023) and operating as a micro-entity with limited financial history. The balance sheet shows modest net assets and a slight working capital deficit, which suggests potential short-term liquidity pressure. However, there are no overdue filings or insolvency indicators at this stage.

2. Key Concerns:

• Negative Net Current Assets: Current liabilities (£43,032) exceed current assets (£37,722) by £5,310, indicating potential liquidity constraints to meet short-term obligations.
• Limited Financial History and Scale: Being a micro-entity operating for under two years, there is limited financial data to assess operational sustainability or profitability trends.
• Concentration of Control: The sole director and 100% shareholder is the same individual, which could present governance risk if operational or strategic decisions are not robustly challenged.

3. Positive Indicators:

• Compliance with Filing Obligations: No overdue accounts or confirmation statements, indicating good regulatory compliance and governance fundamentals.
• Positive Net Assets: Despite liquidity pressure, the company maintains positive net assets (£1,742), reflecting some equity buffer.
• Small Workforce: Operating with only 2 employees reduces fixed overhead risk and suggests a lean operational structure.

4. Due Diligence Notes:

• Review detailed cash flow statements or management accounts to assess actual liquidity and cash burn rate since incorporation.
• Investigate the nature and terms of current liabilities to determine if they are short-term trade creditors, loans, or other obligations, and their maturity profiles.
• Examine the business model and contracts to evaluate revenue generation capacity and sustainability in the construction sector.
• Assess director background and experience given the sole control, to understand capability and risk of governance weaknesses.