Company Number: 14334586

Analysis Date: 2025-07-20 13:21 UTC

1. Risk Rating: MEDIUM
   The company shows improvement in net assets but continues to have negative net current assets, indicating potential liquidity issues. The reliance on director loans and relatively small cash reserves raise moderate solvency concerns, though the company is not overdue on filings and is operational.

2. Key Concerns:

• Negative Working Capital: The net current liabilities of £13,073 as of 2024 indicate the company may struggle to meet short-term obligations without additional financing.
• Director Loan Dependency: The director’s loan account increased to £44,065, accounting for a significant portion of current liabilities, suggesting reliance on informal funding which may affect financial stability.
• Limited Scale and Staff: With only one employee (the director) and minimal turnover data, operational sustainability and growth potential are uncertain.

3. Positive Indicators:

• Net Asset Improvement: The company moved from a net liability position (-£3,138) in 2023 to net assets of £37,229 in 2024, reflecting business growth and asset acquisition.
• Tangible Asset Growth: Significant additions to plant, machinery, and vehicles (£36,397) indicate investment in operational capacity.
• Compliance: All statutory filings are up to date with no overdue accounts or confirmation statements, indicating regulatory compliance and good governance.

4. Due Diligence Notes:

• Cash Flow Analysis: Review detailed cash flow statements and projected receipts/payments to assess whether current liabilities can be met without further reliance on director loans.
• Debtor Quality and Collection: Investigate the composition and age of trade debtors (£17,485) and related party debts (£18,080) to confirm collectability and impact on liquidity.
• Director Loan Terms: Clarify repayment terms and security of the director’s loan to evaluate the risk it poses to creditors and the company’s financial position.