Company Number: 13202546

Analysis Date: 2025-07-29 17:16 UTC

1. Risk Rating: MEDIUM
   The company shows some signs of financial stress with a notable decline in net assets and net current assets turning negative in the latest year. However, it remains active and compliant with filing deadlines, and there are no indications of insolvency proceedings or director disqualifications.

2. Key Concerns:

• Liquidity Deterioration: Net current assets fell from positive £11,017 in 2023 to negative £5,223 in 2024, indicating potential cash flow challenges to meet short-term obligations.
• Significant Reduction in Net Assets: Net assets dropped sharply from £27,744 in 2023 to £2,623 in 2024, which may reflect operational losses or asset disposals impacting financial stability.
• High Level of Long-Term Debt: Creditors due after one year reduced from £19,355 to £7,239, but still represent a material liability relative to the company’s diminished net assets and cash holdings.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statements are up to date, demonstrating regulatory compliance.
• Active Status and Operating Business: Incorporated in 2021 and actively trading in construction-related activities, with a clear SIC classification reflecting core business operations.
• Ownership and Control: A single director and 75-100% shareholder providing clear governance and accountability structure.

4. Due Diligence Notes:

• Investigate Causes of Asset and Equity Decline: Review detailed profit and loss accounts, cash flow statements and notes for 2023-24 to understand drivers behind the steep fall in net assets.
• Assess Solvency and Cash Flow Projections: Evaluate current working capital management and ability to service both short and long-term liabilities given current negative net working capital.
• Examine Loan Terms and Covenants: Understand the nature of bank loans and overdrafts, repayment schedules, and any associated financial covenants that could present risk.
• Review Director’s Operational Plans: Obtain insight into business strategy to address financial deterioration and plans to restore profitability and liquidity.