Company Number: 13569557

Analysis Date: 2025-07-29 16:09 UTC

1. Risk Rating: HIGH

   Justification: The company exhibits minimal net assets (£100) consistently over multiple years with very low current assets and liabilities, indicating an extremely thin capitalization. The micro-entity status and small scale of operations (2 employees) restrict the depth of financial data, but the minimal working capital and net assets raise significant solvency and liquidity concerns.

2. Key Concerns:

   • Extremely Low Net Assets and Working Capital: Net assets and net current assets remain at £100 for four consecutive years, signaling a fragile financial base.
   • Minimal Current Assets: Current assets are under £1,000, suggesting very limited liquid resources to meet short-term obligations.
   • Lack of Financial Growth or Profitability Data: No profit & loss details are provided; the static net asset figure and micro-entity filings limit insight into operational performance or ongoing sustainability.

3. Positive Indicators:

   • Timely Filing Compliance: No overdue accounts or confirmation statements, indicating good regulatory compliance.
   • Active Status: The company is registered as active and not in liquidation or administration.
   • Stable Employee Base: Maintains a small but consistent workforce (2 employees), which may correspond with a low-cost operational model.

4. Due Diligence Notes:

   • Investigate Revenue and Profitability: Request detailed income statements or management accounts to assess business viability beyond balance sheet snapshots.
   • Examine Cash Flow Trends: Understand how the company funds operations given minimal current assets; check for related party loans or off-balance-sheet financing.
   • Review Director and Ownership Backgrounds: Verify the experience and creditworthiness of the director(s) and any persons with significant control.
   • Confirm Contractual Commitments: Given the SIC code (construction of commercial buildings), verify whether the company has ongoing contracts or projects that justify its continued operation.
   • Assess Contingent Liabilities: Micro-entity accounts may omit disclosure of contingent liabilities or off-balance sheet risks; clarify these with management.

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