HARCON DESIGN LIMITED

Risk Rating: LOW The company demonstrates a strong and improving solvency position, with net assets growing significantly from £3,580 in 2020 to £148,050 in 2024. Liquidity appears healthy, with current assets comfortably covering current liabilities by a factor of 2.4:1. Furthermore, the company has a long operating history (incorporated in 2006) and maintains good standing with Companies House filings. The primary risks stem from operational concentration and the inherent opacity of micro-entity reporting rather than immediate financial distress.

Key Concerns * Key Person Dependency & Operational Scale: The accounts consistently report only one employee, who is likely the director/shareholder. This creates significant operational risk; the loss or incapacitation of this individual would likely halt business operations entirely. * Financial Volatility & Asset Quality: While the recent trajectory is positive, the balance sheet has historically been volatile (net assets dropped from £93,400 in 2015 to just £3,580 in 2020, before recovering). Additionally, the rapid growth in current assets to £404,779 in 2024 requires scrutiny—without a breakdown, it is unclear how much of this is readily available cash versus potentially illiquid trade debtors or construction work-in-progress. * Information Opacity: As a micro-entity filing under FRS 105, the company provides minimal financial disclosure. There is no Profit & Loss account, cash flow statement, or detailed notes, making it impossible to assess trading margins, director compensation, or cash generation from operations.

Positive Indicators * Strong Recent Growth: The company has shown impressive momentum in the latest fiscal year, with net assets more than doubling from £63,793 to £148,050, suggesting highly profitable contract activity during this period. * Healthy Liquidity Position: Net current assets stand at £235,874 against current liabilities of £168,905. The company appears well-positioned to meet its short-term obligations without needing to liquidate fixed assets or seek emergency financing. * Regulatory Compliance: The company is up to date with its statutory filings. Accounts were approved promptly in August 2025 for the November 2024 year-end, and the confirmation statement is not overdue, indicating good administrative governance.

Due Diligence Notes * Composition of Current Assets: Investigate the nature of the £404,779 in current assets. In the construction and architectural sectors, large current asset figures often represent unbilled work-in-progress or outstanding trade debtors, which can be subject to delayed payment or dispute. * Long-term Creditors: Clarify the nature of the £93,482 in creditors falling due after more than one year. Determine whether this represents director loans, bank finance, or trade-related deferred income, as this impacts the company's true leverage. * Related Party Transactions: Given that Mr. Ashley Mark Cawdron holds over 75% of the shares and voting rights, it is crucial to understand if the recent asset growth is funded by genuine trading profits or by capital injections via director loans. The historical volatility in net assets may also suggest irregular dividend distributions.