Company Number: 14249462

Analysis Date: 2025-07-29 20:24 UTC

1. Risk Rating: MEDIUM
   The company demonstrates a positive net current asset position and growing shareholders’ funds, indicating improvement in solvency; however, low cash balances and a significant portion of current assets tied up in debtors present liquidity concerns.

2. Key Concerns:

• Liquidity Risk: Cash on hand is very low (£177), which may impact the ability to meet immediate obligations despite positive net current assets, relying heavily on debtor collections.
• Concentration of Control: One individual holds 75-100% shares and voting rights, which may pose governance and succession risks.
• Taxation Liabilities: A substantial portion of current liabilities (£61,831) relates to taxation and social security, which may indicate tax payment timing or cash flow management issues.

3. Positive Indicators:

• Financial Improvement: Shareholders’ funds increased significantly from £1,012 in 2023 to £31,980 in 2024, reflecting accumulated retained earnings and business growth.
• Compliance: The company is up to date with both accounts and confirmation statement filings, demonstrating good regulatory compliance.
• Operational Scale: With a small number of employees and manageable fixed assets, the company appears lean and focused in its quantity surveying activities.

4. Due Diligence Notes:

• Investigate the nature and collectability of the large debtor balance (£92,853) to assess actual liquidity and cash flow reliability.
• Review the tax liabilities in detail to understand if these are accrued liabilities or overdue payments and their impact on cash flow.
• Examine the potential risks related to the high concentration of control in one individual, including any governance safeguards and contingency plans.
• Understand the company’s turnover and profitability trends beyond the balance sheet to evaluate operational sustainability, as income statement details were not provided.