Company Number: NI680017

Analysis Date: 2025-07-20 18:16 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns as evidenced by a drastic decline in net assets from £9,202 in 2023 to only £100 in 2024, coupled with a very low current asset base of £600. The absence of employees and small asset base raise questions about operational sustainability.

2. Key Concerns:

• Severe deterioration in net assets and working capital within one year, indicating potential financial distress.
• Heavy reliance on director advances to sustain operations, with a director loan balance of £600 as of 2024, reflecting possible cash flow problems.
• No employees reported for two consecutive years, suggesting limited or no ongoing operational activity which may impair business viability.

3. Positive Indicators:

• Company remains active and compliant with filing deadlines for both accounts and confirmation statements, showing regulatory adherence.
• Ownership and control appear stable with a single majority shareholder/director, potentially allowing streamlined decision-making.
• Industry classification (plumbing, heat and air-conditioning installation) is a sector with consistent demand, which may support future recovery if operational issues are addressed.

4. Due Diligence Notes:

• Investigate details behind the sharp decline in net assets and current assets in the 2024 financial year to understand underlying causes (e.g., write-offs, losses, reduced trading).
• Review cash flow statements and bank reconciliations to assess liquidity position and ability to meet short-term obligations.
• Confirm the company's operational status beyond filings, given zero employees and minimal assets, including contracts, revenue streams, and business plans.
• Examine the nature and terms of director advances and whether these represent ongoing financial support or potential risks.
• Assess external factors such as market conditions or regulatory changes impacting the company’s business model.