Company Number: 14433604

Analysis Date: 2025-07-29 15:07 UTC

1. Risk Rating: MEDIUM
   The company is very young (incorporated in late 2022) and classified as a micro-entity, which limits financial disclosure and operational history. The latest accounts show modest net assets but very low current assets relative to current liabilities, indicating potential liquidity challenges. However, no overdue filings or immediate solvency signals are present.

2. Key Concerns:

• Liquidity Position: Current assets of £100 versus current liabilities of £550, despite reported net current assets of £1,802, suggest limited cash or liquid resources on hand, potentially stressing short-term obligations. The net current assets figure likely reflects prepayments and accrued income (£2,252), which are not immediately convertible to cash.
• Lack of Operational Data: The company reports zero employees for the year and limited financial history, making it difficult to assess operational sustainability or revenue generation capacity.
• Director Turnover and Control: Two directors have resigned recently, leaving a single active director who holds 75-100% control. This concentration of control and recent director changes may pose governance or continuity risks.

3. Positive Indicators:

• Compliance: The company’s accounts and confirmation statement are up to date, with no overdue filings or penalties, indicating good regulatory compliance.
• Net Assets Positive: Despite the small scale, the company reports positive net assets (£1,352), implying solvency on a balance sheet basis.
• Clear Industry Focus: The SIC codes confirm the company’s engagement in electrical installation and construction, sectors with consistent demand, providing a defined business model.

4. Due Diligence Notes:

• Verify the nature and realizability of prepayments and accrued income contributing to net current assets to better understand liquidity.
• Review cash flow statements or bank statements (if available) to assess operational cash generation and working capital management.
• Investigate reasons behind director resignations and the governance structure to evaluate management stability and potential succession plans.
• Confirm the company’s revenue streams and customer base to assess business sustainability beyond the initial incorporation phase.
• Assess any related party transactions given the high control concentration by a single individual.