Company Number: 13150444

Analysis Date: 2025-07-29 20:50 UTC

1. Risk Rating: LOW
   The company demonstrates solid net asset and working capital positions, timely filings, and no signs of financial distress or governance issues given the available data.

2. Key Concerns:

• Declining Net Assets and Cash Reserves: Net assets decreased from £95,955 in 2022 to £57,404 in 2025, and cash dropped from £60,879 to £28,832 over the same period, which may suggest some erosion of financial buffers.
• Relatively Small Share Capital: With only £100 in share capital, the company relies heavily on retained earnings and operational cash flows, which could be a concern if profits falter.
• Concentration of Control: Both directors hold significant control (25-50%) and voting rights, which may raise governance risks if disputes arise or if oversight is limited.

3. Positive Indicators:

• Strong Working Capital Position: Current assets consistently exceed current liabilities, with net current assets around £38k in the latest year, indicating liquidity to meet short-term obligations.
• Consistent Filing Compliance: No overdue accounts or confirmation statements, reflecting good regulatory compliance and governance discipline.
• Stable Employment and Operations: The company maintains a steady headcount of 4 employees, and tangible fixed assets indicate ongoing operational activity in commercial building construction.

4. Due Diligence Notes:

• Examine the causes behind the reduction in net assets and cash balances over the last three years to assess sustainability and any operational or financial strain.
• Review detailed profit and loss information (not filed publicly) to understand profitability trends, margins, and cash flow generation.
• Confirm whether director loans or related party transactions exist beyond the nominal £274 loan reported to assess potential financial dependencies or conflicts of interest.
• Verify the nature and collectability of debtors, particularly other debtors which comprise a large portion of current assets, to gauge liquidity risk.
• Assess the governance framework given the dual director control to ensure appropriate checks and balances are in place.