Company Number: 13889473

Analysis Date: 2025-07-20 18:28 UTC

1. Risk Rating: LOW

The company demonstrates a positive net asset position, consistent profitability, and timely filing of statutory accounts and confirmation statements. These indicators collectively suggest a low risk of insolvency or liquidity distress at this stage.

2. Key Concerns:

• Declining Fixed Assets: Fixed assets decreased from £60,829 in 2023 to £50,795 in 2024, which may warrant investigation to understand if this reflects asset disposals or impairments that could affect operational capacity.
• Thin Working Capital: Current assets are modest (£3,153 in 2024) with no detailed breakdown beyond cash and debtors; while net current assets are positive, the small buffer may limit flexibility in meeting short-term obligations.
• Modest Profit Margins: Profit before tax is relatively low (£4,842 on £161,029 turnover), indicating tight margins typical in the removal services sector but requiring ongoing monitoring to ensure sustainability.

3. Positive Indicators:

• Consistent Profitability: The company made a profit in both reported years (£4,842 in 2024 and £5,736 in 2023), showing operational viability.
• Strong Shareholder Equity: Net assets and shareholders’ funds remain robust (£53,949 in 2024), indicating that the company is not reliant on external debt and is solvent on a balance sheet basis.
• Compliance and Governance: All statutory filings are up to date with no overdue accounts or confirmation statements, reflecting good governance and regulatory compliance.
• Ownership and Control: The sole director and 100% shareholder is clearly identified, implying straightforward governance and decision-making structures.

4. Due Diligence Notes:

• Investigate the reasons behind the reduction in fixed assets in the latest year, including any disposals or impairments, and their impact on operational capacity.
• Confirm detailed composition of current assets, particularly cash and receivables aging, to assess liquidity robustness more precisely.
• Review contracts and customer base for revenue stability and growth potential, given modest turnover and limited profit margins.
• Verify employee cost structure and efficiency given the increase in staff costs from £19,944 to £45,516, which could impact profitability.
• Examine any off-balance sheet commitments or contingent liabilities not disclosed in the accounts.
• Assess director’s background and experience further, though no adverse records are indicated from available data.