Company Number: 12798919

Analysis Date: 2025-07-20 15:08 UTC

1. Risk Rating: LOW
   The company demonstrates growing net assets, positive working capital, and no overdue filings, indicating stable financial management and compliance. The consistent increase in net current assets and shareholders' funds over recent years supports a low risk of insolvency.

2. Key Concerns:

• Limited Cash Reserves: Cash at hand remains very low (£100), signaling potential liquidity constraints despite positive net current assets driven by sizable debtors.
• High Debtor Reliance: A large proportion of current assets are debtors (£26,817) which may impact liquidity if collection delays occur.
• Small Scale Operation: With only 2 employees and minimal share capital (£100), operational resilience and scalability may be limited, potentially affecting long-term sustainability.

3. Positive Indicators:

• Strong Working Capital: Net current assets have more than doubled from £10,939 in 2023 to £23,881 in 2024, reflecting improved short-term financial health.
• Compliance and Governance: Up-to-date statutory filings with no overdue accounts or confirmation statements suggest sound regulatory compliance.
• Profit Retention: Retained earnings have increased from £10,839 in 2023 to £23,781 in 2024, indicating profitability and reinvestment into the business.

4. Due Diligence Notes:

• Review debtor aging and credit control policies to assess the risk of bad debts and liquidity impact.
• Confirm the nature of the principal activity and assess market demand and competitive positioning in the builders’ carpentry and joinery sector.
• Investigate cash flow statements (not provided) to better understand operational cash generation and any potential liquidity gaps.
• Verify director’s background and any related party transactions given the single director structure.