Company Number: 13077846

Analysis Date: 2025-07-29 14:25 UTC

1. Risk Rating: LOW to MEDIUM
   The company displays improving financial metrics with positive net assets and growing profits. However, modest equity relative to turnover and some long-term provisions warrant cautious monitoring.

2. Key Concerns:

• Provisions for liabilities: The presence of a significant provision (£496,963) on the balance sheet may indicate contingent risks or potential future outflows requiring closer scrutiny.
• Long-term creditors: The company has non-current liabilities (£217,063) that could pressure future cash flows if not managed prudently.
• Relatively low equity base: Shareholders’ funds at £393,535 compared to turnover of over £16 million suggest a leveraged operational model which could be vulnerable to downturns or delayed payments.

3. Positive Indicators:

• Strong working capital position: Net current assets increased substantially to over £1.1 million, reflecting good short-term liquidity.
• Profitability: The company reported a profit before tax of £228,733 on significant revenue growth, indicating operational scalability and improving margins.
• Compliance and governance: No overdue filings; accounts and confirmation statements are up to date. Auditor’s report is clean with no material concerns noted, and going concern status is supported.

4. Due Diligence Notes:

• Review the nature and reason for the provisions and long-term creditors to assess potential impact on solvency and cash flows.
• Confirm the quality and aging profile of trade debtors (£2.99 million), considering the construction industry’s vulnerability to payment delays.
• Evaluate the company’s contract pipeline and operational capacity to sustain revenue growth without overextending resources.
• Investigate director backgrounds and changes for any governance or operational risk implications, noting the recent appointment in November 2024.
• Consider external sector risks such as construction regulation compliance, particularly health and safety and building control adherence.