Company Number: 14151673

Analysis Date: 2025-07-29 13:43 UTC

1. Risk Rating: HIGH
   The company displays a negative net asset position with net liabilities increasing from £1,475 in 2023 to £154 in 2024 (note: the figures are negative). Current liabilities exceed current assets significantly, indicating potential liquidity issues. The financial indicators suggest solvency risks and insufficient working capital to meet short-term obligations.

2. Key Concerns:

• Negative Net Assets: The balance sheet shows net liabilities, which is a serious solvency red flag for a company, especially one incorporated recently (2022).
• Working Capital Deficiency: Current liabilities (£17,703 in 2024) far exceed current assets (£2,037), implying cash flow and liquidity constraints.
• Limited Financial History and Scale: As a micro-entity with only two employees and minimal fixed assets, the business scale is small, limiting operational resilience and financial flexibility. The company is in a high-risk industry (building completion and finishing) that may require more capital and cash flow stability.

3. Positive Indicators:

• No Overdue Filings: The company is current on accounts and confirmation statement filings, indicating compliance with statutory requirements.
• Single Director with Clear Control: Mr. Safdar Ali Bashir holds full ownership and control, which can facilitate swift decision-making and strategic direction.
• Increase in Fixed Assets: Fixed assets increased modestly from £12,836 to £15,512 year-on-year, suggesting some investment in operational capacity.

4. Due Diligence Notes:

• Examine Cash Flow Details: Investigate the company’s cash flow statements or management accounts if available to assess the ability to meet short-term liabilities.
• Review Creditors Composition: Determine whether current liabilities are trade creditors, loans, or other debts and their payment terms to assess liquidity pressure.
• Assess Business Model and Contracts: Understand revenue sources, client base, and contract stability in the building completion sector to gauge operational sustainability.
• Director Background Check: Confirm no negative director conduct records or disqualifications for Mr. Bashir that could impact governance.
• Future Funding Plans: Explore whether the company has plans or access to external funding or additional capital injections to improve solvency.