Company Number: 12452646

Analysis Date: 2025-07-20 11:52 UTC

1. Risk Rating: LOW
   CW Ecology Ltd demonstrates a stable and improving financial position with positive net current assets and net assets increasing steadily year over year. The company is current on all statutory filings and not subject to any liquidation or insolvency proceedings.

2. Key Concerns:

• The company’s share capital is minimal (£2), which may limit the buffer against financial shocks and could indicate a small equity base.
• The business has only two employees on average, including directors, which may constrain operational capacity and scalability.
• Limited financial disclosures typical of micro-entity filings restrict in-depth assessment of profitability, cash flow, and contingent liabilities.

3. Positive Indicators:

• Consistent growth in net assets from £1,079 in 2020 to £46,102 in 2025 signals strengthening equity and financial health.
• Positive net current assets throughout the years indicate sufficient short-term liquidity to cover current liabilities.
• No overdue accounts or confirmation statements, reflecting good regulatory compliance and governance.
• Directors hold significant control but appear stable and are professionals in ecology, aligning with the company’s environmental consulting activity.

4. Due Diligence Notes:

• Review detailed profit and loss figures and cash flow statements (not provided here) to confirm sustainable operational cash generation.
• Investigate the nature and terms of current liabilities to ensure no hidden debt pressures.
• Confirm the absence of contingent liabilities or off-balance sheet risks that could impact solvency.
• Assess client concentration and contract stability given the small team size and niche sector.
• Verify directors’ background checks for any undisclosed regulatory or legal issues beyond formal disqualifications.