Company Number: 12838818

Analysis Date: 2025-07-20 15:57 UTC

1. Risk Rating: MEDIUM
   The company shows recent improvement in net current assets and net assets, moving from negative working capital in prior years to positive figures in the latest year. However, the low absolute values of net assets and current assets relative to liabilities, combined with minimal share capital and a sole director/shareholder structure, indicate moderate solvency and liquidity risk.

2. Key Concerns:

• Historically negative net current assets: In the 2022, 2023, and 2024 financial years, the company reported negative net current assets (working capital), which poses liquidity risk. Although this reversed in 2025, the improvement should be monitored for sustainability.
• Low capitalization: Share capital is only £1.00, reflecting limited equity buffer to absorb operational shocks or losses.
• Single director and 100% ownership: Governance risk is elevated due to concentration of control, with no independent oversight or diversity in management, which may impact operational resilience and compliance.

3. Positive Indicators:

• Recent improvement in financial position: The 2025 accounts show positive net current assets (£1,304) and net assets (£5,719), a marked improvement from prior years, indicating potential better cash flow management or business performance.
• Timely filing: No overdue accounts or confirmation statements, indicating compliance with statutory filing requirements.
• Operating in a defined niche: The SIC code (41202) confirms the company is focused on domestic building construction, a sector with consistent demand, which supports operational sustainability if well-managed.

4. Due Diligence Notes:

• Review cash flow statements and profit and loss accounts (not filed publicly) to assess the quality and stability of earnings and cash inflows, given the limited balance sheet data.
• Investigate the nature of provisions and accruals (£1,387 and £1,500 respectively in 2025), which impact net assets and could reveal contingent liabilities or deferred expenses.
• Assess director’s experience and any potential conflicts of interest given sole control, including background checks on Mr. Anthony Raymond Purse.
• Confirm absence of any undisclosed liabilities or pending litigation that could affect solvency.
• Evaluate client base and contract pipeline to verify future revenue streams and business continuity.