Company Number: 14062724

Analysis Date: 2025-07-19 12:26 UTC

1. Risk Rating: HIGH
   The company shows negative net assets and net current assets for the latest financial year, indicating potential solvency concerns. The rapid deterioration from a small positive net asset position to a negative one within one year is a significant red flag.

2. Key Concerns:

• Negative net assets of £653 as of 30 April 2024, down from positive £264 the previous year, suggesting erosion of equity and potential insolvency risk.
• Current liabilities exceed current assets, resulting in negative working capital, which raises liquidity concerns and potential cash flow difficulties.
• Very limited financial information due to micro-entity filing; absence of profit and loss account limits ability to assess operational performance and sustainability.

3. Positive Indicators:

• Company is active, not in liquidation or administration, with all statutory filings (accounts and confirmation statements) up to date and no overdue submissions.
• Small number of employees (2) may imply low fixed overhead costs, which could provide some operational flexibility.
• Sole director and 75-100% shareholder control by Mr. Sukhwinder Singh suggests clear governance lines and accountability.

4. Due Diligence Notes:

• Investigate underlying causes for the decline in net assets and negative working capital—specifically, whether due to operational losses, increased payables, or other liabilities.
• Obtain management accounts or cash flow statements to evaluate liquidity position and short-term solvency beyond the limited micro-entity disclosures.
• Confirm whether there are any contingent liabilities, related party transactions, or off-balance-sheet obligations that may further impact financial stability.
• Assess the company's contract pipeline and revenue visibility given the construction sector's project-based cash flow nature.
• Review director's plans for turnaround or capital injection given the negative equity reported.