Company Number: 14378659

Analysis Date: 2025-07-29 16:57 UTC

1. Risk Rating: HIGH
   The company exhibits a high risk profile primarily due to its negative net current assets and very limited equity base shortly after incorporation. The inability to cover current liabilities from current assets signals potential solvency and liquidity issues.

2. Key Concerns:

• Negative net current assets of £5,346 indicate working capital deficiency, raising immediate liquidity concerns.
• Current liabilities (£41,246) significantly exceed current assets (£35,900), with a large portion owed for taxation and social security (£35,512), which could trigger enforcement or penalties if unpaid.
• Minimal retained earnings (£660) and shareholders’ funds (£760) suggest a weak capital buffer to absorb losses or support operations in a competitive construction installation sector.

3. Positive Indicators:

• The company is current with statutory filings (accounts and confirmation statements), demonstrating compliance with Companies House requirements.
• Cash balance of £22,570 represents a reasonable portion of current assets, potentially providing some immediate liquidity flexibility.
• Directors have relevant experience and have maintained governance roles since incorporation without reported disqualifications.

4. Due Diligence Notes:

• Investigate the nature and timing of the significant taxation and social security creditor to assess risk of HMRC enforcement or penalties.
• Review cash flow forecasts and management plans addressing working capital deficits and ability to meet short-term obligations.
• Clarify the company’s revenue streams, profitability, and contracts in hand, as no income statement is filed, limiting insight into operational performance.
• Confirm if additional financing or shareholder support is anticipated to strengthen capital position.
• Assess director backgrounds for any adverse history not disclosed, given the company’s early stage and risk profile.