Company Number: 14554186

Analysis Date: 2025-07-20 12:40 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns with net current liabilities of £73,614 and negative shareholders’ funds of £63,912 within its first financial period. The very limited cash balance of £16 alongside substantial short-term creditors suggests liquidity pressures. Despite being a newly incorporated company, the financial position signals material risk in meeting obligations.

2. Key Concerns:

• Negative Net Current Assets and Shareholders’ Funds: The company’s current liabilities (£78,630) exceed current assets (£5,016) by a wide margin, indicating inability to cover short-term debts from liquid resources.
• Minimal Cash Reserves: Cash on hand is negligible at £16, raising immediate liquidity risk and potential cash flow difficulties.
• Reliance on Director Support: The going concern basis is supported solely by director commitment without external funding evidence, increasing operational risk if such support is withdrawn.

3. Positive Indicators:

• Active Status and Timely Filings: The company is active with no overdue filings, indicating compliance with statutory obligations.
• Sole Director and PSC Alignment: Single director Joseph Edward Ward holds full control, potentially enabling swift decision-making.
• Clear Industry Focus: Classified under SIC 41100 (Development of building projects), the company has a defined operational niche.

4. Due Diligence Notes:

• Examine Director’s Financial Support: Review any director loans, guarantees, or forthcoming capital injections to assess sustainability.
• Assess Trade Creditor Terms: Understand payment terms and creditor relationships given the high trade creditor balance (£47,899).
• Review Business Model and Pipeline: Investigate contracts, pipeline, and revenue generation plans to evaluate operational viability.
• Confirm No Pending Regulatory or Legal Issues: Verify absence of director disqualifications or regulatory actions.
• Evaluate Asset Valuation: Confirm valuation and realizability of intangible goodwill (£5,408) and tangible assets (£4,394).