Company Number: 13284141

Analysis Date: 2025-07-20 11:35 UTC

1. Risk Rating: MEDIUM
   The company shows a mixed liquidity position with a recent deterioration in net current assets and a decline in net assets. While not insolvent, these indicators suggest some caution is warranted regarding short-term financial stability.

2. Key Concerns:

• Liquidity Deterioration in 2025: Current liabilities have increased sharply to £34,497 against current assets of £30,804, resulting in a net current liability of £564, a weakening from positive working capital in 2024.
• Declining Net Assets: Net assets have dropped from £25,618 in 2024 to £14,008 in 2025, indicating potential erosion of capital or accumulated losses that may impact solvency.
• Limited Financial History and Scale: As a micro-entity incorporated in 2021 with only two employees, the company’s small scale and limited operating history pose inherent risks regarding operational stability and resilience.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statements are filed on time, showing compliance with regulatory requirements.
• Positive Shareholders’ Funds: Despite decline, shareholders’ funds remain positive at £14,008 as of 2025 year-end.
• Stable Leadership: Directors have been consistent since incorporation and are qualified professionals in the landscape architecture sector, which supports operational continuity.

4. Due Diligence Notes:

• Review detailed profit and loss account or management accounts (not filed publicly) to understand the drivers behind the decline in net assets and increased liabilities.
• Investigate the nature of the increased current liabilities in 2025 to assess if these are short-term debts or accrued expenses that may impact cash flow.
• Confirm bank or creditor relationships and any contingent liabilities or guarantees that may affect solvency.
• Assess client concentration and revenue streams to evaluate business sustainability given the small team size.