Company Number: 12663752

Analysis Date: 2025-07-29 13:55 UTC

1. Risk Rating: HIGH
   The company demonstrates significant liquidity issues as evidenced by consistent negative net current assets over the last four years, indicating difficulty in meeting short-term obligations. The very small shareholder capital base and minimal fixed assets further constrain financial resilience.

2. Key Concerns:

• Persistent negative working capital (net current liabilities of approximately £16,000 to £22,000) suggests ongoing cash flow stress and potential difficulty in settling creditors on time.
• No employees reported and minimal operational scale increase raise questions about business activity and sustainability.
• Very low share capital (£1) and declining net assets indicate limited equity buffer against operational or financial shocks.

3. Positive Indicators:

• Company status is active with no overdue filings, demonstrating compliance with statutory requirements.
• The director has remained consistent since incorporation, indicating stable governance.
• The company operates within a defined niche (electrical installation, SIC 43210), suggesting a clear business focus.

4. Due Diligence Notes:

• Investigate the nature and timing of current liabilities to assess creditor relationships and payment terms.
• Confirm ongoing trading activity given the absence of employees and limited asset growth.
• Review cash flow statements and any management plans to improve liquidity or restructure liabilities.
• Assess director’s plans or external support to strengthen the financial position.
• Verify any contingent liabilities or off-balance sheet obligations not disclosed in micro-entity accounts.