Company Number: 14461152

Analysis Date: 2025-07-20 18:45 UTC

1. Risk Rating: MEDIUM
   The company is in its first full financial year with modest net current assets but overall net liabilities due to accruals and deferred income. The micro-entity status and single director structure suggest a small operation with limited financial buffer, posing moderate risk.

2. Key Concerns:

• Negative net assets (£-225) indicating liabilities exceed assets, mainly due to £600 accruals/deferred income.
• Very limited current assets (£686) relative to liabilities, which could constrain liquidity and operational flexibility.
• Single director ownership and control (100%) concentrates operational and governance risk without broader oversight.

3. Positive Indicators:

• No overdue filings, demonstrating compliance with Companies House requirements.
• Positive net current assets (£375) suggest short-term obligations are covered by current assets, supporting solvency in the near term.
• The director’s background as an electrical engineer aligns with the company’s SIC code (43210 Electrical installation), indicating relevant operational expertise.

4. Due Diligence Notes:

• Clarify the nature and timing of the £600 accruals and deferred income to assess impact on cash flow and solvency.
• Review cash flow projections and working capital management given the small asset base and negative net equity.
• Confirm operational viability and revenue generation capability since incorporation in late 2022, given limited financial history.
• Investigate any contingent liabilities or off-balance sheet commitments not reflected in the micro-entity accounts.
• Evaluate director’s capacity and plans for growth or capital injection given sole ownership and control.