Company Number: 14633262

Analysis Date: 2025-07-20 15:29 UTC

1. Risk Rating: LOW

Justification: Cut Above Carpentry Limited is a newly incorporated private limited company with its first set of small company accounts filed on time. The balance sheet shows positive net current assets and shareholders’ funds, indicating an initial healthy financial position. There are no overdue filings or insolvency indicators.

2. Key Concerns:

• Limited operating history: Incorporated in February 2023, the company has completed only one financial period, which limits trend analysis of financial performance and stability.
• Minimal operational scale: The financials show just one employee (the director) and a very small asset base (£6,533 current assets), indicating a micro business with limited resources.
• Potential tax creditor exposure: The creditors note indicates a tax creditor of £1,965 offset by a social security credit balance of £5,639, resulting in net negative current liabilities of £847. The composition and timing of these tax positions should be clarified to assess any future cash flow impact.

3. Positive Indicators:

• Positive net current assets (£7,380) and shareholders’ funds, indicating the company’s assets exceed liabilities at the reporting date.
• No overdue accounts or confirmation statements, demonstrating regulatory compliance and good governance.
• Director ownership and control are consolidated (75-100%), simplifying management and decision-making structure.

4. Due Diligence Notes:

• Review underlying tax balances and understand the nature of social security creditor balance versus tax liabilities to assess any deferred or contingent tax risks.
• Obtain turnover and profitability details beyond the balance sheet to verify operational sustainability.
• Investigate the director’s business plan and pipeline of contracts given the limited scale and newness of the company.
• Confirm no undisclosed related party transactions or contingent liabilities exist, especially given the director’s significant control and involvement.