Company Number: 13213729

Analysis Date: 2025-07-29 14:37 UTC

1. Risk Rating: HIGH

The company shows a significant deterioration in financial position in the most recent year, moving from positive net assets of £7,578 in 2023 to negative net assets of £4,000 in 2024. This signals solvency concerns as liabilities now exceed assets.

2. Key Concerns:

• Negative Net Assets and Working Capital: Current liabilities have nearly quadrupled from £5,344 in 2023 to £20,209 in 2024, while current assets increased only slightly. This has resulted in net current liabilities of £5,881, a material liquidity red flag.
• Shrinking Fixed Assets and Capital Erosion: Fixed assets declined modestly and shareholders’ funds turned negative, indicating erosion of the company’s capital base.
• Minimal Share Capital and Single Director: With only £1 in share capital and one director, the company may have limited financial backing and operational resilience.

3. Positive Indicators:

• Timely Filing Compliance: No overdue accounts or confirmation statements, showing adherence to regulatory filing requirements.
• Micro-Entity Status: The company operates as a micro-entity, which simplifies reporting and may imply a smaller scale with potentially lower operational risk.
• Stable Workforce: The company maintained one employee, consistent with prior periods, suggesting operational continuity.

4. Due Diligence Notes:

• Investigate the nature and cause of the sharp increase in current liabilities during the 2024 financial year.
• Assess cash flow statements (if available) to determine if liquidity issues are temporary or ongoing.
• Review director’s report or management commentary for plans addressing negative equity and solvency.
• Confirm no outstanding legal or financial obligations that could exacerbate risk.
• Evaluate the company’s contracts and revenue streams given its SIC code (construction installation) to assess operational viability.