Company Number: 14130688

Analysis Date: 2025-07-29 12:26 UTC

1. Risk Rating: MEDIUM
   The company shows a negative net current asset position and a decline in net assets over the last two years, which indicates some liquidity and solvency pressures. However, it remains active with no overdue filings and positive net assets, suggesting some resilience.

2. Key Concerns:

• Negative net current assets (£-3,194 in 2025) signal potential short-term liquidity constraints and difficulty meeting immediate obligations.
• Declining net assets from £12,382 in 2024 to £7,710 in 2025 may reflect operational losses or asset depreciation, raising solvency concerns.
• Minimal scale and financial data (micro entity with only one employee) limit operational stability and diversification, increasing vulnerability to market fluctuations.

3. Positive Indicators:

• The company remains compliant with filing deadlines (accounts and confirmation statements are up to date).
• It holds positive net assets (£7,710) and total assets exceed current liabilities, indicating some buffer against insolvency.
• Operating in construction of domestic buildings (SIC 41202), a sector with stable demand, and has a relatively recent incorporation date (2022), indicating potential for growth.

4. Due Diligence Notes:

• Examine the detailed profit and loss account and cash flow statements to understand causes of declining net assets and negative working capital.
• Verify the composition of fixed assets and current assets to assess asset quality and liquidity.
• Investigate contracts, customer base, and pipeline to evaluate operational viability and revenue sustainability given the small scale.
• Review director background and governance practices to ensure compliance and capable management.