Company Number: 13199941

Analysis Date: 2025-07-29 16:55 UTC

1. Risk Rating: LOW
   The company's financials indicate a strong net asset position with substantial net current assets and no overdue filings. The micro-entity status aligns with its small scale, and there are no indications of insolvency or liquidity issues.

2. Key Concerns:

• Concentration Risk: Control is significantly held by one individual (Mr. Kieren Francis Mcdonnell) with 25-50% share and voting rights, which may impact governance dynamics.
• Small Scale Operations: With only two employees and micro-entity classification, operational scale is limited, which could affect business resilience and growth potential.
• Fixed Asset Decline: A gradual decrease in fixed assets from £12,385 in 2021 to £7,930 in 2024 may suggest limited investment in long-term operational capacity.

3. Positive Indicators:

• Strong Liquidity: Current assets far exceed current liabilities, yielding healthy net current assets (£747,789 in 2024), suggesting good short-term solvency.
• Consistent Net Asset Growth: Net assets have increased significantly from £27,522 in 2021 to £754,212 in 2024, reflecting retained earnings or capital injections.
• Compliance and Timeliness: All statutory filings including accounts and confirmation statements are up to date with no overdue submissions, indicating regulatory compliance and good governance.

4. Due Diligence Notes:

• Verify the composition of current assets to understand cash availability versus receivables or inventory, to assess true liquidity.
• Review the income statement and cash flow statements (not provided) for profitability trends and cash generation capability.
• Understand the nature of provisions for liabilities (£1,507 in 2024) to assess potential contingent risks.
• Evaluate the governance structure beyond the two directors and PSC to understand decision-making processes and risk management.
• Investigate client concentration and contract stability given the small employee base and industry sector (other construction installation).