Company Number: 13521047

Analysis Date: 2025-07-20 14:37 UTC

1. Risk Rating: HIGH
   The company shows significant deterioration in liquidity and solvency metrics in the latest financial year, with net current liabilities and a sharp decline in net assets.

2. Key Concerns:

• Liquidity Stress: Net current assets have moved from a positive £23,964 in 2023 to negative £3,572 in 2024, indicating potential cash flow difficulties to meet short-term obligations.
• Declining Net Assets: Net assets have dropped drastically from £40,752 in 2023 to just £1,089 in 2024, signaling erosion of the company’s equity base.
• Increased Long-Term Creditors: Creditors falling due after one year have decreased but remain substantial at £9,081, which combined with poor working capital may raise solvency concerns.

3. Positive Indicators:

• No Filing Delinquencies: All statutory accounts and confirmation statements are filed on time, showing compliance with regulatory requirements.
• Single Shareholder Control: The sole director owns 75-100% of shares, which may facilitate agile decision-making and capital support if needed.
• Operating in Construction Sector: The company is engaged in domestic building construction—a sector with ongoing demand—though this is not sufficient to offset financial concerns.

4. Due Diligence Notes:

• Investigate the cause of the sharp decline in current assets and net assets, including potential losses or asset write-downs.
• Review details of creditor arrangements, especially the composition and terms of long-term liabilities.
• Assess cash flow statements and profit/loss accounts (not provided) to understand operational performance and recurring viability.
• Confirm whether the director has provided any financial support or guarantees given the weak balance sheet.
• Verify if there are any contingent liabilities or pending legal issues that may impact financial stability.