Company Number: 14101077

Analysis Date: 2025-07-19 12:24 UTC

1. Risk Rating: MEDIUM
   The company has shown a positive turnaround in net assets and working capital in its latest financial year, moving from negative to positive territory. However, the relatively modest net asset base (£17,467) and current liabilities of £70,815 against current assets of £99,823 indicate a tight liquidity position. The company is also very young (incorporated 2022) with limited financial history and only one employee, which adds some operational risk.

2. Key Concerns:

• Liquidity Risk: Current liabilities remain substantial relative to current assets, which could pressure cash flow if receivables are not collected timely or if payables accelerate.
• Operational Scale and Sustainability: The company operates with only one employee and minimal fixed assets (£22,500), which may limit operational capacity and scalability in the development of building projects industry.
• Limited Financial History and Small Equity Base: Being incorporated in 2022 with initial losses and a small positive net asset position restricts the cushion against unforeseen losses or economic downturns.

3. Positive Indicators:

• Improved Financial Position: The company moved from net liabilities of £(1,418) to net assets of £17,467 within two years, showing signs of financial recovery or growth.
• Timely Compliance: No overdue filings for accounts or confirmation statements indicate good regulatory compliance and governance practices.
• Single Controlling Shareholder/Director: Clear ownership and control by Mr. Arron Daniel Dewhurst can simplify decision-making and accountability.

4. Due Diligence Notes:

• Review cash flow statements and debtor aging schedules to assess short-term liquidity and receivables quality.
• Examine contract pipelines, project backlogs, and client concentration to evaluate operational sustainability and revenue visibility.
• Investigate the nature and terms of the £34,041 creditors due after one year to understand long-term obligations.
• Assess director track record and any related party transactions given sole directorship and shareholding.
• Confirm the reason for the recent name change and any material business restructuring or strategy shifts.