Company Number: 13121891

Analysis Date: 2025-07-20 12:05 UTC

1. Risk Rating: LOW

Justification: Climatherm Limited demonstrates solid improvements in financial position over its first three full years of operation. The company shows a strong liquidity position with cash balances increasing substantially to £54,928 as of 31 March 2024 and net current assets positive at £54,155. The company is up to date on statutory filings with no overdue accounts or confirmation statements. There are no indications of insolvency or operational distress.

2. Key Concerns:

• Modest scale of operations: The company remains micro-sized with minimal share capital (£100) and limited employee count (3), which may constrain scalability and resilience.
• Concentrated control: A single director, Mr. Marc James Lyon, holds 75-100% of shares and voting rights, representing potential governance concentration risk.
• Relatively high tax and social security creditors: The current liabilities include £17,563 due to taxation and social security, a notable increase from prior year, which warrants monitoring for timely settlement.

3. Positive Indicators:

• Consistent growth in net current assets and shareholders’ funds from £1,556 (2021) to £54,155 (2024), signaling improving financial strength.
• Healthy cash reserves relative to current liabilities (cash covers liabilities more than twice), indicating low liquidity risk.
• Timely compliance with Companies House filing deadlines, reflecting good regulatory adherence.
• Stable employment levels and no director transactions disclosed, reducing operational and related-party risk concerns.

4. Due Diligence Notes:

• Review detailed profit and loss accounts or management accounts (not filed) to assess profitability trends and operational cash flows.
• Verify the nature and timing of tax and social security liabilities to ensure they are current and manageable.
• Investigate the company’s contracts, client base, and order book to evaluate operational sustainability and growth prospects.
• Consider governance structure implications due to majority ownership and control by a single director.
• Confirm the adequacy of insurance and compliance with industry regulations given the plumbing and HVAC installation SIC classification.