Company Number: 13062423

Analysis Date: 2025-07-20 13:42 UTC

1. Risk Rating: LOW

Justification: Cobra Carpentry Limited demonstrates a solid net asset base with consistent growth over the past four years, culminating in net assets of £77,904 as of the 2023 year-end. The company holds positive net current assets and is not overdue on filings, which suggests good compliance and operational oversight. The micro-entity status and single director structure imply a small, manageable operation with limited complexity.

2. Key Concerns:

• Limited scale and resource base: As a micro-entity with only one employee and minimal fixed assets, the company’s operational capacity and resilience to economic shocks may be constrained.
• Concentration risk: Control and ownership rest entirely with one individual, which could present governance and continuity risks in the event of unforeseen circumstances affecting the director.
• Absence of detailed profit and loss information: The lack of filed profit and loss accounts limits visibility into revenue trends, profitability, and cash flow generation capacity.

3. Positive Indicators:

• Strong improvement in net assets and working capital in 2023, indicating enhanced financial stability.
• Timely filing of annual accounts and confirmation statements, reflecting compliance with regulatory requirements.
• Positive net current assets and absence of overdue liabilities show adequate liquidity to meet short-term obligations.
• Continuity of director and shareholder control simplifies decision-making and accountability.

4. Due Diligence Notes:

• Review underlying profit and loss performance and cash flow statements to assess operational sustainability beyond balance sheet strength.
• Investigate customer base, contract stability, and pipeline to understand revenue predictability.
• Confirm absence of contingent liabilities or off-balance sheet obligations.
• Assess director’s background for any undisclosed conduct issues or conflicts.
• Examine potential impact of limited fixed assets on capacity to scale or secure financing if needed.