Company Number: 15026707

Analysis Date: 2025-07-20 13:00 UTC

1. Risk Rating: HIGH
   The company’s financial data indicates net current liabilities of £28,830 and negative net assets of £29,480 as of 31 July 2024. This signifies that current liabilities exceed current assets, raising immediate solvency concerns. As a newly incorporated entity (July 2023) operating in the capital-intensive development of building projects sector, this negative working capital position is a significant red flag.

2. Key Concerns:

• Negative Net Assets and Working Capital Deficit: The company is insolvent on a balance sheet basis, with liabilities exceeding assets, indicating a risk of inability to meet short-term obligations.
• Limited Financial History and Scale: Incorporated less than one year ago with micro-entity status, it has minimal financial track record and only two employees, increasing operational and execution risk.
• Director Turnover: One of two directors resigned recently (February 2025), which could signal internal governance or strategic issues, although no disqualifications or misconduct are noted.

3. Positive Indicators:

• Timely Filings: The company is current with both accounts and confirmation statement filings, indicating compliance with statutory requirements.
• Sole Remaining Director with Significant Control: Mr. Anthony Teal retains control and directorship, providing clarity on governance and decision-making authority.
• Micro-Entity Reporting Exemption: Use of micro-entity accounts reflects simplified reporting and potentially lower administrative burden.

4. Due Diligence Notes:

• Investigate Cash Flow and Funding Sources: Given the negative net assets and working capital deficit, review cash flow projections, existing credit facilities, and capital injections to assess liquidity sustainability.
• Review Director Resignation Context: Understand reasons behind Keith Teal’s resignation to evaluate any governance or operational risks.
• Assess Contractual and Project Pipeline: As a building project developer, analyze current and prospective contracts, project financing, and dependencies to gauge operational viability.
• Confirm Accuracy of Financial Reporting: Given the early stage and negative equity, verify accounting treatment and completeness of liabilities.