Company Number: NI668503

Analysis Date: 2025-07-29 17:16 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns with net liabilities of £224,991 as of the latest financial year end (31 March 2024), a substantial decline from net assets of £44,926 the prior year. The net current liabilities position of £228,359 indicates liquidity stress. These factors together signal high financial risk and potential inability to meet obligations without external support.

2. Key Concerns:

• Deteriorating Solvency: The company moved from positive net assets in 2023 to significant net liabilities in 2024, a material deterioration suggesting losses or write-downs impacting shareholder funds.
• Negative Working Capital: Current liabilities more than double current assets, indicating liquidity issues that could impair day-to-day operations and supplier payments.
• Small Scale and Limited Capital: The company is a micro-entity with minimal share capital (£99) and only 2 employees, potentially limiting operational flexibility and ability to absorb financial shocks.

3. Positive Indicators:

• Timely Filing Compliance: No overdue accounts or confirmation statements were noted, showing regulatory compliance and governance discipline.
• Ongoing Operations: Company status is active, and website information indicates an operational business presence in the construction sector.
• Stable Employee Base: Consistent headcount of 2 employees over recent years suggests operational continuity despite financial challenges.

4. Due Diligence Notes:

• Investigate the cause of the large increase in current liabilities and corresponding asset write-downs or losses during the 2024 financial year.
• Review cash flow statements and creditor aging to assess liquidity management and risk of insolvency.
• Confirm absence of director disqualifications or legal proceedings that may affect governance or operational stability.
• Assess customer and supplier concentration risks given the small scale and industry sector.