Company Number: 13626353

Analysis Date: 2025-07-29 16:17 UTC

1. Risk Rating: MEDIUM
   The company demonstrates very limited net assets and shareholder funds, with a notable decline in net assets over recent years, raising concerns about solvency and operational scale. However, it remains compliant with filing requirements and shows no immediate signs of liquidation or administration.

2. Key Concerns:

• Declining Net Assets: Net assets decreased from £2,831 in 2021 to £202 in 2024, indicating erosion of equity and potential solvency risks if the trend continues.
• Minimal Working Capital: Net current assets are positive but very modest (£981 in 2024), suggesting limited liquidity buffers to absorb cash flow shocks.
• No Employees Reported: The absence of employees may imply reliance on subcontractors or minimal operational activity, raising questions about business sustainability and growth capacity.

3. Positive Indicators:

• On-Time Filings: The company is up to date with both accounts and confirmation statement filings, reflecting good regulatory compliance and governance practices.
• No Overdue Liabilities: Current liabilities are relatively low and have not increased disproportionately, indicating manageable short-term obligations.
• Micro-Entity Status: The small scale of operations reduces regulatory burdens and may imply a lean cost structure.

4. Due Diligence Notes:

• Investigate the nature and source of the decline in net assets and whether it is due to operational losses, dividend payments, or other factors.
• Clarify the business model given zero employees and assess how the company delivers its construction services (e.g., subcontracting, director involvement).
• Review cash flow statements and bank balances (not provided here) to assess real liquidity and ability to meet short-term obligations.
• Confirm if there are any contingent liabilities or off-balance sheet risks not reflected in the micro-entity accounts.
• Verify the director’s background and track record, given the company’s small scale and financial trends.