Company Number: 12731662

Analysis Date: 2025-07-29 18:59 UTC

1. Risk Rating: MEDIUM
   Harrison Fencing Ltd shows modest net asset levels and persistent net current liabilities, indicating some liquidity pressure. However, the company remains active, compliant with filings, and possesses tangible assets. The financial position suggests moderate risk but no immediate solvency crisis.

2. Key Concerns:

• Negative Net Current Assets: The company has current liabilities exceeding current assets by £1,770 as of June 2024, though this is an improvement from previous years. This liquidity shortfall could strain day-to-day operations.
• Declining Cash Reserves: Cash has decreased substantially from £15,765 in 2023 to £5,302 in 2024, which may indicate cash flow difficulties or cash used to cover liabilities.
• Directors Loan Account Reduced to Zero: Previously there was a significant director loan creditor balance (£9,349 in 2023) that disappeared in 2024. The nature and impact of this change should be clarified as it could affect working capital and creditor relationships.

3. Positive Indicators:

• Compliance with Filing Requirements: Accounts and confirmation statements are up to date with no overdue filings, reducing regulatory risk.
• Tangible Fixed Assets Present: The company holds fixed assets valued at £5,728, providing some asset backing beyond current assets.
• Small Share Capital and Growing Shareholders’ Funds: Shareholders’ funds increased marginally to £3,958, indicating some retained profitability or capital injection.

4. Due Diligence Notes:

• Investigate the nature of the reduction in the directors loan account and any related party transactions impacting liquidity.
• Review cash flow statements and bank reconciliations to assess ongoing cash flow health and timing of receivables/payables.
• Confirm contract backlog and revenue visibility given the turnover recognition policy outlined, to evaluate operational sustainability in the construction installation sector.
• Assess any contingent liabilities or off-balance sheet exposures not visible in filleted accounts.
• Verify employment and operational scale since company employs only 1 person, which may limit capacity or growth potential.