Company Number: 12591894

Analysis Date: 2025-07-20 16:07 UTC

1. Risk Rating: HIGH

Justification: The company has persistently negative net assets and net current liabilities that have worsened significantly over recent years. The latest accounts show net liabilities of £32,142 and negative working capital of £30,714, indicating insolvency. Although directors have committed to supporting the company financially for 12 months, the fundamental balance sheet weakness suggests a high solvency risk.

2. Key Concerns:

• Solvency Issues: Negative net assets and large net current liabilities indicate inability to meet short-term obligations from existing assets without external support.
• Declining Financial Position: Net liabilities have doubled from £15,998 in 2023 to £32,142 in 2024, reflecting deteriorating financial health.
• Reliance on Director Support: The going concern statement depends on directors’ financial backing, posing a risk if this support ceases.

3. Positive Indicators:

• Compliance: No overdue filings for accounts or confirmation statements; the company is up to date with statutory obligations.
• Active Status: The company is active and continues to file accounts, suggesting ongoing operations.
• Low Employee Count: A small team (2 employees) may reduce operational overheads, potentially aiding financial management.

4. Due Diligence Notes:

• Investigate the nature and timeline of director financial support commitments to assess sustainability.
• Review cash flow statements or management accounts (if available) to evaluate liquidity beyond balance sheet figures.
• Assess business model viability given persistent losses and asset erosion in the construction/development sector.
• Clarify any contingent liabilities or off-balance sheet obligations that may exacerbate financial stress.
• Confirm whether there are any regulatory, legal, or contractual risks not evident in the accounts.