Company Number: 12823061

Analysis Date: 2025-07-19 12:23 UTC

1. Risk Rating: LOW

Justification: Anderson's Maintenance Limited demonstrates a positive net current asset position that has improved from £9,900 in 2023 to £19,324 in 2024, indicating an enhanced short-term solvency position. The company has maintained timely filing compliance with no overdue accounts or confirmation statements. Cash balances have increased significantly to £30,166 in 2024 from £21,109 in 2023, supporting liquidity. The small scale of operations and limited employee count reduce operational complexity and risk.

2. Key Concerns:

• Reliance on Trade Debtors: Trade debtors decreased markedly from £17,614 in 2023 to £6,712 in 2024, which could suggest collection issues or reduced sales; this warrants monitoring for cash flow stability.
• Limited Equity Base: The company has minimal share capital (£100) and relatively modest retained earnings, suggesting limited buffer against unexpected losses or financial stress.
• Concentration Risk: With only one director and two employees, there may be operational vulnerability if key personnel leave or are indisposed.

3. Positive Indicators:

• Strong Liquidity Position: Cash holdings increased substantially to over £30k, exceeding current liabilities by a comfortable margin.
• Improved Working Capital: Net current assets nearly doubled year-on-year, indicating enhanced ability to meet short-term obligations.
• Compliance and Governance: The company is up to date with statutory filings and has no reported regulatory or governance issues.

4. Due Diligence Notes:

• Verify the nature and aging profile of trade debtors to assess collectability and confirm no significant bad debt risk.
• Review contracts and revenue streams to evaluate the sustainability of turnover and dependence on key clients.
• Confirm no contingent liabilities or off-balance sheet obligations that could impact financial stability.
• Assess director track record and whether succession plans or additional management are in place to mitigate concentration risk.