Company Number: 15551242

Analysis Date: 2025-07-20 16:56 UTC

1. Risk Rating: MEDIUM
   The company is newly incorporated (March 2024) with limited operating history and currently shows a small positive net asset position (£102) but negative net current assets (-£525). The relatively tight working capital position and reliance on director loans indicate a moderate solvency and liquidity risk at this early stage.

2. Key Concerns:

• Negative net current assets (-£525) suggest potential short-term liquidity strain to meet immediate obligations.
• Significant current liabilities (£4,782) concentrated in taxation and social security may indicate tax liabilities or PAYE/NIC obligations that require close monitoring.
• Reliance on an unsecured, interest-free director loan (£1,263) to finance current assets could pose a risk if the director is unable or unwilling to advance further funds.

3. Positive Indicators:

• The company filed accounts and confirmation statements on time, showing compliance with statutory requirements.
• Positive net assets (£102) reflect some retained equity beyond immediate liabilities.
• The business operates in joinery installation, a specialized trade within construction, which can provide steady demand if managed well.
• The sole director and 100% owner is actively involved, potentially allowing agile decision-making.

4. Due Diligence Notes:

• Investigate the nature and timing of the current liabilities, especially taxation and social security balances, to assess payment plans or potential arrears.
• Review cash flow forecasts and working capital management plans to understand how liquidity will be maintained going forward.
• Confirm the extent and terms of director loans and any plans for external funding or capital injection.
• Assess contract pipeline and revenue recognition policies to verify sustainability of turnover and profitability.
• Verify that all regulatory filings remain current and that no governance issues exist with the sole director.