Company Number: 13591372

Analysis Date: 2025-07-29 13:57 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits negative net current assets and net liabilities as of the latest financial year (2024), indicating solvency and liquidity concerns. The deterioration from a positive net current asset position in 2023 to a significant negative position in 2024 suggests financial distress.

2. Key Concerns:

• Negative Net Current Assets: The company’s current liabilities (£16,893) exceed its current assets (£3,037) by £13,856 as of August 2024, reflecting a working capital deficit that may impair the ability to meet short-term obligations.
• Declining Financial Position: The net assets fell from a positive £1,842 in 2023 to negative £13,856 in 2024, indicating losses or increased liabilities that could threaten operational stability.
• Concentrated Control and Recent Director Changes: One individual holds 75-100% ownership and voting rights, and there was a director resignation and appointment within the last two years, which may imply governance or operational risks requiring further inquiry.

3. Positive Indicators:

• Compliance: The company is up to date with filings, including accounts and confirmation statements, with no overdue submissions, indicating adherence to regulatory requirements.
• Micro Entity Status: As a micro-entity, the company benefits from simplified reporting requirements, which may reduce administrative burden.
• Increasing Employee Count: The average number of employees increased from 3 to 4 in the latest year, which may signal some operational expansion or increased capacity.

4. Due Diligence Notes:

• Review detailed financial statements and management accounts to understand causes of the significant decline in net assets and working capital deficit.
• Assess cash flow statements and creditor payment history to evaluate liquidity pressures and potential risk of insolvency.
• Investigate director backgrounds and reasons for recent changes in management to understand any governance or operational risks.
• Examine contracts, project pipelines, and client concentration to assess sustainability of revenue streams in the construction industry sectors covered.
• Confirm any contingent liabilities or off-balance sheet risks that may further impact financial stability.