Company Number: 13853134

Analysis Date: 2025-07-20 13:02 UTC

1. Risk Rating: LOW
   The company shows positive net current assets and net assets in the latest financial year, no current liabilities recorded, and is compliant with filing deadlines. The micro-entity status limits disclosure but the balance sheet indicates financial stability for a newly incorporated construction business.

2. Key Concerns:

• Decline in Fixed Assets: Fixed assets decreased from £40,000 in 2023 to £30,000 in 2024, which may suggest disposals or impairments needing clarification.
• Limited Operating History: Incorporated in 2022 with only two years of financial data limits visibility on longer-term operational sustainability.
• Single Director and Employee: Governance and operational continuity risk due to sole director and only one employee reported.

3. Positive Indicators:

• Positive net current assets of £5,457 in the latest year, indicating sufficient short-term liquidity to meet obligations.
• No current liabilities reported in the latest accounts, reducing solvency risk concerns.
• On-time filings for accounts and confirmation statements, demonstrating regulatory compliance and good governance discipline.
• Majority ownership and control concentrated in one individual, potentially enabling decisive management actions.

4. Due Diligence Notes:

• Investigate reasons behind the reduction in fixed assets between 2023 and 2024 and assess impact on operational capacity.
• Review cash flow statements or bank statements (if available) to confirm liquidity beyond balance sheet figures.
• Understand client base, contract pipeline, and revenue trends to evaluate sustainability of business operations.
• Verify any contingent liabilities or off-balance sheet items not disclosed in micro-entity accounts.
• Assess background and financial standing of the sole director for governance risk.