Company Number: 12835043

Analysis Date: 2025-07-19 12:26 UTC

1. Risk Rating: MEDIUM
   The company demonstrates a recent turnaround from net liabilities to positive net assets, indicating some recovery. However, the small scale of assets and minimal share capital, combined with a history of negative equity, suggest moderate solvency risk. The micro-entity status means limited financial disclosures, restricting a full assessment.

2. Key Concerns:

• Historical negative equity: The company carried net liabilities from 2021 to 2023, indicating prior financial difficulties that could impact creditor confidence.
• Very small share capital (£1.00) and limited fixed assets, implying a thin capital base and limited ability to absorb shocks.
• Reliance on a single director and employee, potentially indicating operational vulnerability and limited management depth.

3. Positive Indicators:

• Latest accounts (2024) show a positive net asset position (£9,741), reversing previous deficits, suggesting improved financial health.
• Timely filing of both accounts and confirmation statements, indicating regulatory compliance and good governance practices.
• No creditors falling due after more than one year reported in 2024, reducing long-term solvency pressure.

4. Due Diligence Notes:

• Investigate the nature and source of the turnaround in net assets in 2024 to confirm sustainability (e.g., new capital injection, profit generation, asset revaluation).
• Review cash flow statements and income statement (not provided) to assess operational profitability and liquidity trends.
• Confirm whether any contingent liabilities or related party transactions exist that might affect financial stability but are not disclosed in micro-entity accounts.
• Assess the director’s background and capacity to manage the company given the single-person operation and minimal resources.
• Clarify customer base, contract pipeline, and market position in the "Other construction installation" sector to evaluate operational stability.