Company Number: 14367065

Analysis Date: 2025-07-29 12:42 UTC

1. Risk Rating: HIGH
   The company shows a deteriorating financial position with increasing net liabilities and negative net current assets, indicating a significant risk of insolvency in the near term.

2. Key Concerns:

• Negative Net Assets: The net liabilities have increased from £79 (2023) to £1,779 (2024), indicating erosion of equity and financial distress.
• Liquidity Deficit: Current liabilities (£1,427) significantly exceed current assets (£248), resulting in negative working capital of £1,179, which raises concerns about the company's ability to meet short-term obligations.
• Small Scale Operations with Limited Financial Data: The company is a micro-entity with minimal financial disclosure and only one employee, limiting insight into operational robustness and financial sustainability.

3. Positive Indicators:

• No Overdue Filings: The company’s accounts and confirmation statements are filed on time, indicating compliance with statutory requirements.
• Active Status with Sole Director/Controller: Single director and 100% ownership by Gurpal Singh might enable rapid decision-making and control over company affairs.
• Established in Construction Sector: The company operates in construction of domestic and commercial buildings, a sector with consistent demand, which could provide growth opportunities if financial issues are resolved.

4. Due Diligence Notes:

• Investigate Causes of Financial Deterioration: Review detailed profit and loss data (not publicly filed) to understand loss drivers and cash flow dynamics.
• Assess Director’s Plans: Clarify management’s strategy to restore solvency and improve liquidity, including any planned capital injections or operational restructuring.
• Confirm Absence of Debt Covenants or Legal Actions: Check for outstanding creditor pressures, overdue payments, or legal disputes given the negative working capital situation.
• Evaluate Client and Contract Pipeline: Understand future revenue prospects to determine business sustainability beyond current financial weakness.
• Review Related Party Transactions: Since the director is sole controller, verify any transactions that could affect financial stability or creditor interests.