Company Number: SC688963

Analysis Date: 2025-07-29 20:51 UTC

1. Risk Rating: LOW
   Justification: Greyfriars Roofing Ltd demonstrates a solid financial position as of 31 March 2024, with net assets of £157,672 and positive net current assets of £122,500. The company has maintained compliance with filing deadlines and is active without being in any insolvency proceedings. Cash reserves remain adequate relative to current liabilities, indicating low solvency and liquidity risk.

2. Key Concerns:

• The company shows a decline in net assets from £181,860 in 2023 to £157,672 in 2024, which may warrant monitoring for potential profitability or operational issues.
• There is a reported £25,000 creditor due after more than one year (long-term liability) introduced in 2024, which should be examined to understand its terms and impact on future solvency.
• The company operates in the roofing sector, which can be subject to economic cycles and weather-related risks; no diversification is apparent, so operational sustainability could be sensitive to external factors.

3. Positive Indicators:

• Consistent positive net current assets in excess of £120,000 demonstrate good short-term liquidity.
• Cash balances remain strong at £167,723, covering current liabilities comfortably (current liabilities: £129,567).
• The company is timely with statutory filings and has no overdue accounts or confirmation statements, indicating good regulatory compliance and governance.
• Operating with a small number of employees (approximately 12-13) suggests manageable operational scale and costs.

4. Due Diligence Notes:

• Review the detailed profit and loss statement (not provided) to understand the drivers behind the decrease in net assets and assess profitability trends.
• Investigate the nature and conditions of the £25,000 long-term creditor to assess any potential risks to solvency or cash flow.
• Assess contracts and client concentration to evaluate operational sustainability and exposure to market fluctuations in the roofing industry.
• Verify director background beyond the single current director, Mr. Kris McLennan, to ensure no undisclosed regulatory or conduct issues.
• Confirm the completeness and accuracy of fixed asset valuation and depreciation policies, given the recent additions and disposals noted.