Company Number: 12549931

Analysis Date: 2025-07-20 13:02 UTC

1. Risk Rating: HIGH

   The company exhibits significant solvency and liquidity concerns as evidenced by persistent net current liabilities and negative shareholders’ funds over recent years. This financial profile indicates a high risk that the company may struggle to meet short-term obligations without external support.

2. Key Concerns:

   • Negative Working Capital: Current liabilities (£28,232) substantially exceed current assets (£9,529) as of April 2024, resulting in a net current liability of £18,703, which has worsened slightly from the prior year.
   • Negative Net Assets and Shareholders’ Funds: The company’s net liabilities stand at £3,549 in 2024, an improvement from previous years but still negative, indicating accumulated losses and erosion of equity.
   • Reliance on Director Loans: A large portion of current liabilities (£24,088 in 2024) consists of loans from directors, which may not be sustainable or guaranteed, increasing financial risk.

3. Positive Indicators:

   • Increasing Tangible Fixed Assets: Net book value of motor vehicles increased to £15,154, suggesting some investment in operational capacity.
   • No Overdue Filings: Accounts and confirmation statements are up to date, showing compliance with statutory filing requirements.
   • Active Status and Ongoing Operations: The company remains active with ongoing director and secretary appointments, indicating continued business activity.

4. Due Diligence Notes:

   • Assess Sustainability of Director Loans: Investigate terms and conditions of director loans to determine if they are formal, repayable, or convertible, as these significantly impact solvency.
   • Cash Flow Analysis: Obtain cash flow statements to evaluate operational liquidity beyond balance sheet snapshots.
   • Profit & Loss Details: Review profit and loss accounts to understand sources of losses and potential for turnaround.
   • Customer and Contract Stability: Verify ongoing contracts and revenue streams in the construction sector, given the company’s SIC codes.
   • Management and Governance: Evaluate the experience and conduct of current director Amarjit Singh and recently appointed secretary for governance robustness.