Company Number: 15258899

Analysis Date: 2025-07-20 17:58 UTC

1. Risk Rating: MEDIUM

The company is newly incorporated (November 2023) and has filed its first set of accounts for the year ending November 2024. It shows positive net assets and current assets exceeding current liabilities, indicating initial solvency and working capital adequacy. However, the presence of significant hire purchase liabilities secured against fixed assets and provisions indicates some financial leverage and obligations that could impact liquidity and operational flexibility. The company operates in a construction-related sector with one employee, suggesting a small operational scale and potential vulnerability to market fluctuations.

2. Key Concerns:

• Hire Purchase Debt Load: The company carries hire purchase liabilities totaling approximately £18,940 (£18,645 long-term plus £295 short-term) secured on motor vehicles and equipment. This financial leverage may pressure cash flows, especially given the small scale of operations.
• Provisions of £5,026: The nature of these provisions is unspecified but could indicate anticipated liabilities or contingent risks that may affect profitability or solvency.
• Limited Operational History and Scale: With only one employee and being less than a year old, the business has limited operational track record and scale. This raises uncertainty about its sustainability and ability to generate consistent revenue.

3. Positive Indicators:

• Positive Net Assets and Working Capital: Net assets of £42,591 and net current assets of £46,157 demonstrate that the company has a solid equity base and can cover short-term obligations.
• Strong Cash Position: Cash reserves of £68,018 represent a significant portion of current assets, suggesting good immediate liquidity.
• Timely Filing and Compliance: No overdue filings or compliance issues are noted; accounts and confirmation statements are up to date, reflecting good regulatory compliance.
• Experienced Management: Directors include individuals with management and financial advisory backgrounds, potentially supporting sound governance and financial oversight.

4. Due Diligence Notes:

• Clarify the nature and expected timing of the provisions to assess potential impact on future earnings and cash flows.
• Investigate the terms, repayment schedule, and interest obligations of the hire purchase agreements to understand leverage risks.
• Review revenue generation, contract pipeline, and client diversification to evaluate operational sustainability given the company’s early stage.
• Confirm absence of any director disqualifications or historical governance issues for the named directors.
• Obtain updated management accounts or cash flow forecasts to assess ongoing liquidity beyond the year-end snapshot.