Company Number: 13910841

Analysis Date: 2025-07-20 16:58 UTC

1. Risk Rating: MEDIUM
   The company shows positive net assets but has a consistent negative net current asset position (working capital deficit). Cash levels are low relative to current liabilities, indicating potential liquidity constraints. However, the company is active, compliant with filings, and shows modest but positive equity.

2. Key Concerns:

• Liquidity Risk: Net current liabilities of £811 at 31 March 2024, though improved from previous years, indicate ongoing short-term funding pressure to cover immediate obligations.
• Cash Reserves: Very low cash at bank (£2,468) compared to liabilities (£3,279) raises concerns about the ability to meet short-term debts without additional financing.
• Limited Operating History and Scale: Incorporated in 2022 with only 2 employees and small fixed assets, the company’s operational scale is modest, which may impact resilience to market fluctuations or unexpected expenses.

3. Positive Indicators:

• Positive Net Assets and Shareholders’ Funds: Equity increased slightly to £4,662, demonstrating retained earnings and capital support.
• Up-to-Date Filings: No overdue accounts or confirmation statements, indicating good regulatory compliance and governance discipline.
• Operating in a Specialized Sector: Quantity surveying (SIC 74902) with RICS Chartered Surveyor status suggests professional expertise and potential for steady service demand in property surveying.
• Improvement in Working Capital Position: Net current liabilities reduced from -£2,432 in 2023 to -£811 in 2024, showing some progress in managing short-term liabilities.

4. Due Diligence Notes:

• Review detailed cash flow statements and bank facilities to assess the adequacy of liquidity management and dependence on external financing.
• Investigate clients, contract pipeline, and revenue trends given the small scale and short trading history to evaluate operational sustainability.
• Clarify the nature and timing of current liabilities to understand if any are overdue or if payment terms might cause cash flow strain.
• Confirm the directors’ strategy for growth or capital injection plans to support working capital needs.
• Assess any contingent liabilities or off-balance sheet commitments not disclosed in the filleted accounts.