Company Number: 12554625

Analysis Date: 2025-07-20 13:39 UTC

1. Risk Rating: MEDIUM
   The company remains solvent on paper with positive net assets, but a sharp decline in net assets from £8,036 in 2023 to only £771 in 2024 is a notable concern. The micro-entity status and minimal fixed assets also limit financial resilience.

2. Key Concerns:

• Deterioration in Net Assets: Net assets have decreased by over 90% in the latest year, indicating possible operational or financial stress.
• Working Capital Tightness: Net current assets have fallen drastically from £5,885 to just £114, signaling potential liquidity constraints.
• Limited Scale and Resources: As a micro-entity with only two employees and minimal fixed assets, the company may face challenges scaling or absorbing shocks.

3. Positive Indicators:

• No Overdue Filings: Accounts and confirmation statements are filed on time, indicating compliance discipline.
• Stable Management: Directors have been in place since formation, with no disqualifications or governance flags evident.
• Clear Industry Focus: Operating within architectural activities (SIC 71111) with a presumably niche service offering.

4. Due Diligence Notes:

• Review detailed profit and loss data to understand causes behind net assets decline and working capital erosion.
• Assess cash flow statements and creditor payment terms to evaluate liquidity management.
• Investigate any off-balance sheet liabilities or contingent risks not visible in micro-entity accounts.
• Confirm if the company has ongoing contracts or pipeline to support future revenue stability.
• Understand the nature of fixed assets decrease and whether this impacts operational capacity.