Company Number: 13141326

Analysis Date: 2025-07-20 18:34 UTC

1. Risk Rating: MEDIUM
   Justification: The company is active and filing its accounts on time with no overdue returns, which is positive. However, the latest financials show a significant decline in net current assets and net assets compared to the previous reported year, with very low liquidity indicated by minimal cash on hand (£2) and current assets largely tied up in debtors. The company operates in construction and carpentry, sectors that can be capital intensive and sensitive to cash flow issues, which combined with the diminished financial strength, warrants a cautious risk rating.

2. Key Concerns:

• Liquidity risk due to very low cash reserves (£2) despite current liabilities near £8,000, suggesting potential cash flow difficulties in meeting short-term obligations.
• Decline in net assets from £9,674 (2023) to £606 (2024) indicating a material deterioration in financial position over one year.
• Concentration of current assets in debtors (£8,618) raises concerns about collectability and working capital efficiency, especially without trade debtors reported, possibly indicating timing or classification issues.

3. Positive Indicators:

• The company remains active and compliant with statutory filing deadlines, reducing regulatory and governance concerns at present.
• Shareholders’ funds are positive, indicating some retained equity despite the decline.
• The director has an occupation related to the industry (carpenter), which could imply relevant operational knowledge and hands-on management.

4. Due Diligence Notes:

• Investigate the nature and collectability of debtors to assess realisable current assets and cash flow prospects.
• Review recent trading performance and cash flow statements (not filed publicly) to understand the cause of asset decline and liquidity constraints.
• Clarify reasons for the company name change in May 2025 and assess any operational or strategic shifts accompanying this rebranding.
• Confirm director conduct and any related party transactions given the limited size and closely held nature of the company.
• Assess whether the company has any contingent liabilities or off-balance sheet risks not apparent in small company filings.