Company Number: 12733862

Analysis Date: 2025-07-20 19:13 UTC

1. Risk Rating: MEDIUM
   While the company is currently active and compliant with filing deadlines, the decline in net assets and rising long-term liabilities indicate moderate solvency and liquidity risks. The relatively small scale as a micro-entity and limited capital base also constrain financial flexibility.

2. Key Concerns:

• Declining Net Assets: Net assets decreased from £55,792 in 2023 to £44,490 in 2024, suggesting erosion of equity possibly due to losses or increased liabilities.
• Rising Long-Term Creditors: Creditors due after more than one year increased substantially from £5,294 to £21,870, indicating higher leverage and potential future cash outflows that may pressure solvency.
• Limited Capital & Scale: Share capital remains nominal at £100, and the company operates as a micro-entity, which may limit capacity to absorb financial shocks or invest in growth.

3. Positive Indicators:

• Current Assets Exceed Current Liabilities: The company maintains positive net current assets (£30,568 in 2024), suggesting reasonable short-term liquidity to meet immediate obligations.
• Compliance and Timely Filings: No overdue accounts or confirmation statements indicate good regulatory compliance and governance discipline.
• Growing Employment: Increase in average employees from 4 to 6 year-on-year may reflect business expansion or operational scaling.

4. Due Diligence Notes:

• Investigate the nature and terms of long-term creditors to assess repayment risk and covenant conditions.
• Review underlying profit and loss performance (not filed) to understand drivers of declining equity and cash flow sufficiency.
• Assess business model sustainability and order pipeline in the builders’ carpentry and joinery sector amid market conditions.
• Verify directors’ capabilities and governance practices given small shareholder base and family-related appointments.
• Confirm absence of contingent liabilities or off-balance sheet exposures given limited disclosure in micro-entity accounts.