Company Number: 14699129

Analysis Date: 2025-07-29 20:04 UTC

1. Risk Rating: MEDIUM
   The company shows positive net current assets and no overdue filings, indicating operational compliance and some liquidity buffer. However, the low cash balance relative to debtors and a significant increase in current liabilities in the latest year raise concerns about short-term liquidity and working capital management.

2. Key Concerns:

• Liquidity mismatch: Cash reserves dropped sharply from £217 to £7, while current liabilities ballooned from £5 to £1,766 within a year, primarily due to taxation and social security obligations. This could signal cash flow stress if debtors are not collected promptly.
• Concentration risk: One individual (Mr Damian Rados) holds full control over shares, voting rights, and director appointments, which may pose governance risks and limits oversight.
• Limited financial history and scale: Incorporated in 2023 and classified as a micro-entity, the company has a short operational track record and limited asset base (£1,950 net assets), which constrains assessment of sustainable profitability and resilience.

3. Positive Indicators:

• Compliance: No overdue accounts or confirmation statements, demonstrating regulatory adherence.
• Positive net current assets in both reported years reflect the company’s ability to cover short-term liabilities on paper.
• Business focus on niche markets (repair and building of pleasure and sporting boats) may offer specialized revenue streams with potential for growth.

4. Due Diligence Notes:

• Investigate the nature of the increased current liabilities, particularly taxation and social security amounts, to assess timing and payment plans.
• Verify debtor collectability timelines and any contingent liabilities not reflected in the financials.
• Review the company’s business model and contracts to determine revenue stability and growth prospects.
• Examine governance arrangements given the sole director/shareholder structure, including any related party transactions.
• Confirm absence of external financing or credit facilities that may impact liquidity.