Company Number: 14707208

Analysis Date: 2025-07-20 12:48 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk due to net liabilities of £3,387 within its first full accounting period. Negative working capital (-£2,907) and net current liabilities indicate inability to meet short-term obligations from current assets.

2. Key Concerns:

• Negative Net Assets and Working Capital: The company’s liabilities exceed its assets, suggesting financial distress and potential inability to cover debts as they fall due.
• Short Operating History: Incorporated in March 2023, the company has limited financial history to demonstrate operational stability or profitability.
• Director Resignation and Ownership Concentration: One director resigned within the first year, leaving a single controlling shareholder with full voting rights, which may concentrate decision-making risk.

3. Positive Indicators:

• Timely Filings: The company is current with both accounts and confirmation statements, indicating compliance with filing requirements.
• Small Size and Micro Entity Status: Reduced regulatory burden and operational scale could allow for lean cost structures and easier management.
• Active Trading Classification: The company’s SIC codes align with its stated roofing and building activities, suggesting business operations consistent with its sector.

4. Due Diligence Notes:

• Investigate the reasons behind the director’s resignation and any impact on governance or operations.
• Review cash flow forecasts and current contracts to assess potential for improving liquidity and solvency.
• Examine detailed creditor terms and any contingent liabilities not reflected in the balance sheet.
• Assess the shareholder’s financial capacity and willingness to support the business through additional capital if needed.
• Verify the operational status and any ongoing projects to gauge sustainability and revenue generation prospects.