Company Number: 14670074

Analysis Date: 2025-07-29 20:20 UTC

1. Risk Rating: MEDIUM
   The company is newly established (incorporated in Feb 2023) and holds net assets of £58,376. However, it shows a negative net working capital position (current liabilities slightly exceeding current assets) and a significant long-term creditor balance of £50,000. These factors introduce moderate solvency and liquidity risks typical for a micro-entity in its startup phase.

2. Key Concerns:

• Negative net current assets (working capital deficit of £115) indicating potential short-term liquidity pressure to meet immediate obligations.
• Material creditor amounts falling due after more than one year (£50,000) which suggests reliance on external financing or deferred payments that must be managed prudently.
• Limited financial history with only one 13-month accounting period completed, making it difficult to assess operational sustainability or profitability trends.

3. Positive Indicators:

• Positive net assets of £58,376, demonstrating some equity buffer and initial capitalization.
• Compliance with filing deadlines; last accounts and confirmation statement are up to date, indicating good regulatory compliance.
• Employment of 5 staff suggests some operational activity and potential for scaling in the scaffold erection sector (SIC 43991).
• Directors are resident and have no disqualifications noted, supporting governance stability.

4. Due Diligence Notes:

• Review the nature and terms of the £50,000 long-term creditors to assess repayment risk and impact on cash flows.
• Obtain management accounts or cash flow forecasts to evaluate current liquidity and operational cash generation.
• Investigate business contracts or pipeline to gauge revenue visibility and growth prospects for scaffold erection services.
• Confirm no undisclosed contingent liabilities or off-balance-sheet arrangements despite current disclosures.
• Monitor director changes and related party transactions given recent director appointment and resignation activity.