Company Number: 13296412

Analysis Date: 2025-07-29 14:17 UTC

1. Risk Rating: HIGH
   The company shows a deteriorating solvency position with net liabilities of £3,342 as of 31 March 2024, negative working capital, and an absence of cash reserves, which raises significant concerns about its ability to meet short-term obligations.

2. Key Concerns:

• Negative net current assets (£-10,678) and net liabilities indicate potential insolvency risk and difficulties in meeting immediate debts.
• Cash balance is zero despite significant current liabilities, implying liquidity constraints and possible reliance on receivables or director loans for operational cash flow.
• Dependence on director loans with fluctuating balances and unsecured status may signal external financing challenges and risk concentration.

3. Positive Indicators:

• The company remains active and compliant with filing deadlines, showing no overdue accounts or confirmation statements.
• Turnover recognition policies and accounting practices appear consistent with UK GAAP for small entities, indicating adherence to regulatory standards.
• Director ownership is 75-100%, potentially enabling swift decision-making and control over company strategies.

4. Due Diligence Notes:

• Investigate the aging and collectability of trade debtors (£6,870) and director loan account (£10,947), given their materiality to current assets.
• Review cash flow statements or management accounts (if available) to assess operational cash flow sufficiency and financing arrangements.
• Evaluate the nature and terms of the bank loan (£9,726) introduced in 2024 and its impact on ongoing liquidity and solvency.
• Understand the company's business model, order book, and future contract pipeline in the specialised construction sector (SIC 43999) to assess operational sustainability.
• Confirm the director’s intentions and capacity to support the company financially, given the reliance on director loans and equity depletion.