Company Number: 13536728

Analysis Date: 2025-07-20 17:25 UTC

1. Risk Rating: LOW
   Berry's Roofing Limited demonstrates sound financial stability for a micro-entity. Its net assets remain positive with a healthy net current asset position, indicating the company can meet its short-term obligations. No overdue filings or regulatory compliance issues are evident, lowering risk.

2. Key Concerns:

• Declining net assets: Net assets declined from £16,755 in 2023 to £12,140 in 2024, suggesting reduced retained earnings or profitability pressures.
• Reduced current assets: Current assets dropped significantly from £24,466 to £13,588 in the latest year, which could impact liquidity if the trend continues.
• Limited financial disclosure: As a micro-entity, profit and loss details are not filed publicly, restricting insight into operational profitability and cash flow dynamics.

3. Positive Indicators:

• Positive net current assets (£7,495) indicate working capital adequacy to cover current liabilities.
• No overdue statutory filings, demonstrating compliance with Companies House requirements.
• Directors have confirmed exemption from audit and prepared accounts under relevant micro-entity standards, consistent with company size and regulatory expectations.
• Ownership and control are clearly defined with no disqualifications or governance red flags.

4. Due Diligence Notes:

• Review internal management accounts or profit and loss statements to understand the cause of net asset decline and assess profitability and cash flow trends.
• Investigate the nature of the reduction in current assets—whether due to lower receivables, inventory, or cash balances—to evaluate liquidity risks.
• Confirm no contingent liabilities or off-balance-sheet exposures exist that could impact financial stability.
• Consider the impact of limited scale (2 employees) on operational resilience and capacity to scale or absorb shocks.