Company Number: 12717400

Analysis Date: 2025-07-29 19:11 UTC

1. Risk Rating: MEDIUM
   The company shows modest net assets (£988) with current liabilities exceeding current assets, indicating potential liquidity constraints. However, it remains active with no overdue filings, which somewhat mitigates immediate concerns.

2. Key Concerns:

• Liquidity position: Current liabilities (£7,815) exceed current assets (£4,404), resulting in negative net current assets (-£3,411), which may signal cash flow difficulties in meeting short-term obligations.
• Limited financial scale and capitalization: Share capital is nominal (£1), and net assets are minimal, which could restrict the company’s ability to absorb financial shocks or fund growth.
• Single director and shareholder control: Mr. Daniel Phillips holds 75-100% control and is the sole director, which may raise governance and operational risk concerns due to lack of oversight or diversification in management.

3. Positive Indicators:

• Compliance with statutory requirements: No overdue account or confirmation statement filings, suggesting good regulatory compliance and up-to-date statutory records.
• Business continuity: Active status with continued filings since incorporation in 2020 shows ongoing operations and regulatory adherence.
• Micro-entity accounting: The company benefits from simplified reporting reducing administrative burden, which is typical for a small, early-stage business.

4. Due Diligence Notes:

• Investigate the nature and timing of current liabilities to understand if these are trade payables, accruals, or short-term loans, and assess payment terms and creditor relationships.
• Review cash flow statements or management accounts (if available) to assess liquidity trends and working capital management beyond the balance sheet snapshot.
• Understand the operational business model and contracts in place given the SIC code 42990 (construction of other civil engineering projects), to evaluate revenue visibility and sustainability.
• Confirm the director’s capacity and plans for business development, including any plans to increase capitalization or diversify management.
• Consider obtaining background checks on the director for any adverse records or litigation that could impact operational stability.