Company Number: 13033785

Analysis Date: 2025-07-29 19:47 UTC

1. Risk Rating: HIGH
   Justification: The company’s latest micro-entity accounts show significant negative net current assets and net liabilities, indicating a stressed liquidity position and potential solvency issues. Despite being active and current on filings, the financial position deteriorated from prior years, raising concerns about its ability to meet short-term obligations.

2. Key Concerns:

• Negative Net Current Assets: The 2023 accounts report net current liabilities of £27,318 (2022: £15,831), signaling cash flow pressure and an inability to cover short-term debts with current assets.
• Overall Negative Net Assets: The company has net liabilities of £16,724 in 2023, worsening from net assets of £3,393 in 2022. This indicates accumulated losses or balance sheet erosion.
• Low Share Capital and Single Director Control: With only £1 share capital and full control vested in one director (Mr Kenneth Robert Blake), there may be governance and capitalization risks that limit financial resilience and oversight.

3. Positive Indicators:

• Current Filing Compliance: The company is up to date with both accounts and confirmation statement filings, reducing regulatory compliance risk.
• Consistent Employee Base: Maintains a stable workforce of 2 employees, suggesting operational continuity.
• No Insolvency Proceedings: The company is active and not reported as under liquidation, administration, or receivership.

4. Due Diligence Notes:

• Review detailed cash flow information and creditor aging schedules to assess liquidity management and payment behavior.
• Investigate reasons for the decline in current assets and increase in net liabilities between 2022 and 2023.
• Assess director’s plans or actions to improve capitalization or restructure liabilities.
• Confirm whether any related party transactions or contingent liabilities exist that might impact financial stability.
• Evaluate the company’s contracts and revenue streams in building development to understand sustainability amid financial strain.