Company Number: 13111496

Analysis Date: 2025-07-20 14:39 UTC

1. Risk Rating: LOW

Justification: C P Flooring MK Limited demonstrates a solid liquidity position with net current assets of £26,478 as at 31 March 2024 and positive net assets of the same amount. The company is compliant with filing deadlines, indicating good regulatory compliance. Despite modest share capital (£1), the company’s retained earnings (profit and loss reserve) reflect accumulated value, supporting solvency.

2. Key Concerns:

• Declining net assets: Net assets fell from £35,596 in 2023 to £26,478 in 2024, suggesting reduced retained earnings which merits monitoring.
• Absence of fixed assets in 2024: The disposal of motor vehicles and fixed assets reduced tangible assets to zero, which may impact operational capacity or future cash flow needs.
• Concentration of liabilities: A substantial portion of current liabilities consists of corporation tax (£21,708) and VAT (£6,401), indicating tax obligations that require timely settlement to avoid penalties.

3. Positive Indicators:

• Strong liquidity: Cash balance increased from £11,048 in 2023 to £25,514 in 2024, providing a good buffer for short-term obligations.
• Compliance: No overdue filings for accounts or confirmation statements, demonstrating good governance and regulatory adherence.
• Small employee base (2) aligns with small company status and manageable operational complexity.

4. Due Diligence Notes:

• Investigate reasons behind the disposal of all fixed assets and impact on business operations and future capital expenditure plans.
• Review the company’s profitability trends and cash flow statements to understand the decrease in net assets.
• Confirm the accuracy and timing of tax liabilities and payments, assessing potential risks related to corporation tax and VAT obligations.
• Evaluate trade debtor quality and collectability as they represent a significant portion of current assets.