Company Number: 15399276

Analysis Date: 2025-07-29 15:14 UTC

1. Risk Rating: MEDIUM
   Given the company was incorporated in early 2024 and is actively trading with a positive net asset position, the immediate solvency risk appears manageable. However, the thin net current assets relative to current liabilities and significant trade creditors suggest potential liquidity pressures. The limited trading history and absence of an audit increase uncertainty.

2. Key Concerns:

• Liquidity tightness: Current assets (£915k) barely cover current liabilities (£899k), resulting in a modest net current asset figure (£16k), which could strain cash flow if debtors are not collected promptly.
• High trade creditors exposure: Trade creditors (£600k) form a large portion of current liabilities, indicating substantial payables that must be managed carefully to avoid supplier disputes or operational disruption.
• Limited financial track record: As a newly incorporated entity with less than one year’s trading data and no audit, there is limited evidence to fully assess ongoing operational and financial stability.

3. Positive Indicators:

• Positive net assets and shareholder funds (£37k): The company is not insolvent and has equity backing.
• Backing by a parent company with full control: Equityway Holdings Limited owns >75%, which may provide financial support or strategic oversight.
• No overdue filings or compliance issues: All statutory accounts and confirmation statements are timely, indicating good governance and regulatory compliance.
• Sector involvement in construction installation and electricity trade: These are essential services with ongoing demand, which may support future revenue growth.

4. Due Diligence Notes:

• Verify the collectability and aging of trade debtors (£510k) and other debtors to assess realisable cash inflows.
• Review terms and payment schedules of trade creditors and bank loans to understand cash outflow timing and refinance risks.
• Investigate the relationship and financial strength of the parent company Equityway Holdings Ltd for potential support.
• Obtain management forecasts and cash flow projections to evaluate sustainability beyond the initial trading period.
• Confirm the nature and adequacy of internal controls given lack of audit and small company exemption.