Company Number: 12463144

Analysis Date: 2025-07-29 12:50 UTC

1. Risk Rating: MEDIUM
   The company shows a positive turnaround in net assets from a negative £2,507 in 2023 to positive £179,340 in 2024, indicating improved solvency. However, cash on hand is very low (£8,298) relative to current liabilities (£640,134), which poses liquidity concerns. The absence of employees and reliance on work in progress and debtors suggests operational fragility.

2. Key Concerns:

• Liquidity Risk: Cash reserves are minimal (£8,298) compared to significant current liabilities (£640,134), indicating potential cash flow constraints in meeting short-term obligations.
• Operational Stability: No employees reported, indicating possible dependence on contractors or directors. High work in progress (£458,677) and debtors (£352,499) concentration increases risk if these convert slowly or not at full value.
• Volatility of Financial Position: The company moved from negative net assets in 2023 to positive in 2024 mainly due to working capital improvements. This volatility may reflect project timing or recognition issues affecting sustainability.

3. Positive Indicators:

• Improved Net Asset Position: Net assets improved substantially to £179,340 in 2024 from negative in the prior year, showing progress in financial health.
• Compliance: Accounts and confirmation statements are up to date with no overdue filings, indicating regulatory compliance and sound governance practices.
• Shareholder Support: Share capital remains consistent and shareholder funds increased, suggesting ongoing equity backing.

4. Due Diligence Notes:

• Investigate the nature and collectability of trade debtors (£352,105) and the ageing profile to assess liquidity risk.
• Review contracts underlying work in progress (£458,677) for completion risk and valuation methodology to confirm realizable value.
• Assess cash flow forecasts and short-term financing arrangements given low cash balances relative to current liabilities.
• Clarify operational model given no employees reported; understand reliance on third parties or director involvement.
• Review related party transactions or intercompany balances, particularly given significant shareholders with controlling interests.