Company Number: 13586842

Analysis Date: 2025-07-29 14:23 UTC

1. Risk Rating: MEDIUM
   The company is currently active and has filed accounts on time, but there is a notable decline in net assets and current assets in the latest financial year, along with increased accruals and deferred income, which warrants caution.

2. Key Concerns:

• Declining Net Assets and Shareholders’ Funds: Net assets decreased from £42,959 in 2023 to £19,142 in 2024, indicating a weakening equity position that could impact solvency if the trend continues.
• Reduced Current Assets and Increased Accruals: Current assets dropped significantly from £42,687 to £25,627, while accruals and deferred income increased markedly to £12,553, suggesting potential liquidity pressure or deferred revenues that may not yet be cash realizable.
• Limited Scale and Resources: As a micro-entity with only two employees and modest financial size, the company may be vulnerable to operational disruptions or market fluctuations in the construction sector.

3. Positive Indicators:

• Timely Filings and Compliance: Accounts and confirmation statements are up to date with no overdue filings, indicating good regulatory compliance and governance practices.
• Sufficient Working Capital: Despite declines, net current assets remain positive (£31,695), which suggests the company currently meets short-term obligations.
• Single Controlling Shareholder: The director and majority shareholder appears stable with no negative conduct records, implying clear decision-making and control.

4. Due Diligence Notes:

• Review detailed profit and loss account (not filed publicly) to understand causes of the net asset decline and whether losses are operational or one-off.
• Investigate the nature and timing of accruals and deferred income to assess liquidity impact and revenue recognition policies.
• Confirm the sustainability of the business model given its small scale and reliance on a single director/shareholder.
• Verify any contingent liabilities or off-balance sheet risks not apparent in the micro-entity accounts.