Company Number: 13549616

Analysis Date: 2025-07-20 16:39 UTC

1. Risk Rating: MEDIUM
   The company shows improving net assets from a previous deficit, indicating recovery, but current liabilities remain high relative to cash and working capital. The small scale and short trading history add uncertainty.

2. Key Concerns:

• Elevated current liabilities (£2.17M) versus limited cash (£36k) could pressure liquidity despite positive net current assets.
• Significant increase in debtors (£1.3M) and stock (£1.1M) may signal tied-up working capital and potential collection risk.
• The company is relatively new (incorporated 2021) with limited operating history, increasing operational risk and uncertainty on sustainability.

3. Positive Indicators:

• Net assets improved significantly to £322k in 2024 from a negative £25k in 2023, reflecting a stronger balance sheet.
• Net current assets positive at £281k, showing some working capital buffer.
• No overdue filings or compliance issues reported; company status is active and in good standing.
• Ownership and control appears transparent with a single holding company controlling 75-100%, facilitating clear governance.

4. Due Diligence Notes:

• Investigate the nature and collectability of the large debtor balance (£1.3M) to assess credit risk and cash flow impact.
• Review the quality and turnover of stock (£1.1M) to understand inventory management and potential obsolescence.
• Examine cash flow statements or bank activity (not provided) since cash on hand is low relative to liabilities.
• Understand the relationship and financial support from Bentleigh Holdings Limited, the sole controlling shareholder.
• Assess future contract pipeline and revenue generation plans given the company’s recent formation and industry sector (building development).
• Confirm no contingent liabilities or off-balance sheet obligations that could affect solvency.