Company Number: 12821603

Analysis Date: 2025-07-20 14:49 UTC

1. Risk Rating: HIGH
   The company's financial position has deteriorated significantly in the most recent accounting year, with net assets falling from £7,470 in 2023 to just £6 in 2024. This drastic reduction indicates severe solvency risk and suggests the company may struggle to meet its obligations.

2. Key Concerns:

• Sharp decline in net assets and shareholders’ funds from £7,470 to £6 within one year, indicating potential insolvency or operational distress.
• Current liabilities have increased markedly (from £13,166 to £19,973), while current assets remained broadly stable, resulting in a near-zero net current asset position (£711), which may signal liquidity constraints.
• The company employs only one person and has minimal fixed assets (£95), reflecting limited operational scale and potential vulnerability to business disruptions.

3. Positive Indicators:

• The company remains compliant with filing deadlines; accounts and confirmation statements are up to date with no overdue filings.
• Ownership and control rest with a single director and shareholder, which may facilitate swift decision-making and governance clarity.
• The business operates in a defined niche (SIC 43210 - electrical installation), which can be a stable sector if managed well.

4. Due Diligence Notes:

• Investigate reasons behind the dramatic decline in net assets and explore recent financial transactions or extraordinary expenses that contributed to this.
• Review cash flow statements or bank statements (not provided here) to assess operational liquidity and ability to service short-term liabilities.
• Evaluate the company's contract pipeline and revenue trends to determine if the decline is temporary or indicative of deeper operational issues.
• Confirm if the director has made any personal guarantees or if there are contingent liabilities not reflected in the accounts.
• Understand the nature of the increase in creditors and whether they represent trade payables, loans, or other forms of debt.