Company Number: 13581016

Analysis Date: 2025-07-20 11:03 UTC

1. Risk Rating: LOW
   The company demonstrates strong net current assets, robust cash balances, and positive net asset growth over recent years. It maintains timely filings with no overdue accounts or confirmation statements. Its operational scale, reflected in a 30-employee average and consistent asset investment, indicates stable business activity.

2. Key Concerns:

• Related Party Loans: Significant long-term loans (£220,000) to a related party (Evolve Refurbishments Ltd) controlled by the same directors may pose recovery risk and potential conflicts of interest.
• Concentrated Control: Ownership and control are heavily concentrated in two individuals (Mr and Mrs Rousseau), which may present governance risks or succession challenges.
• Deferred Tax Liability: The recognition of a deferred tax provision (£79,243) indicates timing differences in tax payments which should be monitored for future cash flow impact.

3. Positive Indicators:

• Strong Liquidity: Cash at bank increased from £1.59m to £1.91m year-on-year, with current assets comfortably exceeding current liabilities, indicating good short-term liquidity.
• Growing Net Assets: Shareholders’ funds grew from £662k in 2021 to over £2.2m in 2024, reflecting profitable operations or capital injections.
• No Overdue Filings: Accounts and confirmation statements are up to date, suggesting good compliance and corporate governance practices.
• Clear Accounting Policies: The company applies consistent accounting standards and provides transparent notes, enhancing financial statement reliability.

4. Due Diligence Notes:

• Review the terms and collectability of the £220,000 related party loans, including any repayment history or provisions.
• Assess the impact of deferred tax liabilities on future cash flows.
• Verify any contingent liabilities or off-balance-sheet risks not disclosed in the accounts.
• Evaluate the governance structure given the concentrated shareholding and directorship to understand decision-making and risk controls.
• Confirm the nature and sustainability of revenue streams underlying the reported turnover and asset growth.