Company Number: 13885328

Analysis Date: 2025-07-29 20:41 UTC

1. Risk Rating: HIGH
   The company shows persistent negative net assets and net current liabilities over three consecutive years, indicating solvency concerns and potential financial distress.

2. Key Concerns:

• Negative Net Assets: The company has a net liability position of £3,158 as of 28-Feb-2024, slightly improved from prior years but still negative, signaling erosion of shareholder equity.
• Working Capital Deficit: Net current assets are significantly negative (£-44,404), indicating current liabilities exceed current assets by a wide margin and raising liquidity risk.
• Limited Operational Scale: Micro-entity status with only 1 employee and relatively low fixed assets value suggests limited operational capacity and possibly low revenue generation, which may challenge sustainability.

3. Positive Indicators:

• Timely Filings: Accounts and confirmation statements are up to date with no overdue filings, reflecting regulatory compliance and governance discipline.
• Stable Directorship: Same two directors since incorporation with significant shareholding and voting control, indicating stable management structure.
• Slight Improvement in Current Assets: Current assets increased from £1,634 to £8,507 year over year, showing some improvement in liquid resources.

4. Due Diligence Notes:

• Investigate the company’s cash flow and revenue streams to understand how it meets short-term obligations given the working capital deficit.
• Review related party transactions or loans from directors as this may impact financial stability.
• Assess the business model and market position in the renting/leasing of construction machinery and waste collection, particularly given the micro scale and negative equity.
• Confirm absence of any director disqualifications or regulatory actions beyond public records.
• Examine any contingent liabilities or off-balance sheet obligations not disclosed in micro-entity accounts.