Company Number: 13791732

Analysis Date: 2025-07-20 17:28 UTC

1. Risk Rating: HIGH
   The company exhibits several financial red flags, including negative net assets and significant creditor obligations exceeding current assets, indicating solvency concerns. The small micro-entity status and limited employee base imply a very lean operation, potentially vulnerable to cash flow disruptions.

2. Key Concerns:

• Negative Net Assets: The balance sheet shows net liabilities of £644 at year-end 2023, worsening from £3,400 in 2022, indicating erosion of equity and potential insolvency risk.
• High Long-Term Creditors: Creditors due after more than one year stand at £16,770 against very limited fixed and current assets, suggesting reliance on external financing with limited asset backing.
• Minimal Operational Scale: With only one employee and micro-entity classification, the business scale is very small, which may limit operational resilience and growth prospects.

3. Positive Indicators:

• Timely Filing and Compliance: Accounts and confirmation statement are filed on time, indicating good regulatory compliance and governance discipline.
• Director Stability: The sole director and principal shareholder, Mr Lee Dixon, has been in place since incorporation, which may provide strategic continuity.
• Improved Net Current Assets: Net current assets improved from a negative £4,294 in 2022 to positive £4,270 in 2023, suggesting some short-term liquidity improvement.

4. Due Diligence Notes:

• Verify the nature and terms of the long-term creditors: Are these loans, trade payables, or other obligations? Assess repayment schedules and covenants.
• Investigate cash flow statements (if available) or bank statements to understand operational liquidity and working capital management.
• Review any related party transactions or director loans, given the concentration of control in a single individual.
• Assess the business model viability given the small scale, limited assets, and industry sector risks related to painting and road construction.
• Confirm absence of director disqualification or adverse regulatory actions beyond the publicly visible data.