Company Number: 13282273

Analysis Date: 2025-07-19 12:06 UTC

1. Risk Rating: MEDIUM
   The company shows a positive net asset position but exhibits significant fluctuations in net current assets and a substantial increase in current liabilities as of the latest accounts. Being a micro-entity with limited resources and a very small workforce, the operational scale is minimal, which may impact resilience and cash flow stability.

2. Key Concerns:

• The sharp increase in current liabilities from £21,629 in 2023 to £87,219 in 2024, despite an increase in current assets, indicates potential liquidity strain.
• The net current assets decreased markedly from £68,410 in 2023 to £26,278 in 2024, suggesting working capital management may be under pressure.
• The company relies on director loans and advances, which although interest-free and unsecured, could reflect dependence on insiders for short-term funding rather than sustainable external financing.

3. Positive Indicators:

• Positive net assets of £30,612 demonstrate the company remains solvent as of the latest accounts.
• No overdue statutory filings or accounts submissions, indicating compliance with Companies House requirements.
• The directors are actively engaged in the construction industry, suggesting operational knowledge aligned with business activity.
• The company’s incorporation in 2021 and continuous active status suggest it is still in a growth or establishment phase rather than distress.

4. Due Diligence Notes:

• Investigate the underlying causes for the large increase in current liabilities in the 2024 accounts and assess payment terms and creditor concentration.
• Review cash flow statements and bank reconciliations (if available) to evaluate liquidity and cash conversion cycles.
• Clarify the nature and terms of director loans and whether these are sustainable or a sign of funding gaps.
• Assess contract backlog, client diversification, and revenue trends to gauge operational stability beyond balance sheet snapshots.
• Confirm no director disqualification records or governance issues, although none are apparent from current data.