Company Number: 12736115

Analysis Date: 2025-07-29 18:03 UTC

1. Risk Rating: LOW
   The company demonstrates a solid net current asset position that has improved year-on-year, with no overdue filings and a stable director structure. Its financials indicate adequate short-term solvency with positive shareholder funds and sustained growth in assets and retained earnings.

2. Key Concerns:

• Reliance on large debtors balance (£773k) relative to cash (£63k) may pose liquidity timing risks if collections slow.
• Absence of an audit and limited disclosure (small company exemption) restricts external verification of financial accuracy and completeness.
• Low share capital (£4) suggests minimal equity buffer, though this is typical for private companies in this sector.

3. Positive Indicators:

• Consistent increase in net current assets from £7,922 in 2021 to £716,150 in 2024 indicates improving working capital management.
• No overdue annual accounts or confirmation statement filings, reflecting compliance with statutory requirements.
• Business operates in building project development (SIC 41100), a sector with tangible asset backing (noted stock/work in progress of £1.1m).
• Directors have been in place since incorporation with no disqualifications or compliance issues reported.

4. Due Diligence Notes:

• Investigate debtor aging and cash flow cycle to assess risk of delayed payments impacting liquidity.
• Review contracts and ongoing projects to evaluate sustainability of current asset levels and future revenue streams.
• Confirm absence of contingent liabilities or off-balance-sheet risks given limited disclosure.
• Understand related party transactions, if any, especially given the low share capital and director shareholdings.
• Consider obtaining management accounts or unaudited internal financials for more detailed operational insight.