Company Number: 14007734

Analysis Date: 2025-07-29 20:52 UTC

1. Risk Rating: MEDIUM

Justification: David Mortimer Surveys Ltd is a recently incorporated private limited company (since March 2022) operating in environmental consulting. The latest filed accounts show modest net assets (£5,907) and a small negative net current asset position (£-403) indicating slight working capital pressure. Cash balances remain low (£4,115), just below current liabilities (£4,518), which suggests potential liquidity constraints in the short term. However, the company is not overdue on filings and has no regulatory compliance issues noted. The business employs no staff and is wholly owned and controlled by a single director, which may pose operational concentration risk but is not uncommon in micro companies.

2. Key Concerns:

• Negative net current assets in both recent years indicate ongoing liquidity risk and potential difficulty meeting short-term obligations.
• Very low cash reserves relative to current liabilities, with cash only marginally covering immediate debts.
• Single director and sole shareholder structure may limit management depth and operational resilience.

3. Positive Indicators:

• Company is compliant with statutory filing deadlines and shows no overdue returns or accounts.
• Net assets have increased modestly from £4,092 to £5,907 year over year, suggesting some retained profitability or capital injection.
• Tangible fixed assets have increased slightly, indicating investment in operational capacity.
• No audit exemption and accounts prepared under appropriate UK accounting standards for small entities, showing adherence to reporting norms.

4. Due Diligence Notes:

• Review detailed profit and loss data and cash flow statements if available to assess operational cash generation and profitability trends.
• Investigate the nature of current liabilities, especially tax and social security costs which increased significantly, to understand timing and sustainability.
• Assess the robustness of business model given no employees and sole director control, including dependence on key clients or contracts.
• Verify if there are any contingent liabilities, related party transactions, or off-balance sheet obligations not evident in filleted accounts.
• Confirm if additional funding or credit facilities exist or are planned to ease working capital constraints.