Company Number: 13952466

Analysis Date: 2025-07-29 15:50 UTC

1. Risk Rating: HIGH
   The company exhibits persistent negative net assets and net current liabilities over the last two years, indicating solvency and liquidity issues. The negative shareholders' funds reflect continuing losses, and the current liabilities significantly exceed current assets, raising concerns about the company’s ability to meet short-term obligations.

2. Key Concerns:

• Solvency Risk: Negative net assets (£-2,945 as of 31 March 2024) and negative shareholders' funds suggest the company is technically insolvent on a balance sheet basis.
• Liquidity Concerns: Net current liabilities of £-10,646, with current liabilities (mainly other creditors) far exceeding cash and other current assets. This indicates potential cash flow stress and difficulty in servicing immediate debts.
• Operational Stability: The company has reported losses for at least two consecutive years with no significant improvement, and trade debtors have disappeared in the latest year, possibly pointing to reduced sales or collection issues.

3. Positive Indicators:

• Active Status & Compliance: The company is currently active with no overdue filings, indicating compliance with Companies House filing requirements and no immediate regulatory issues.
• Director Control and Stability: The sole director and 100% shareholder, Mr. Howard Cunningham, appears to be stable with no noted disqualifications or governance concerns.
• Industry Focus: The company operates in electrical installation (SIC 43210), a service sector with ongoing demand potential, though this is not reflected in current financials.

4. Due Diligence Notes:

• Investigate the nature and terms of the "other creditors" (£16,491) which comprise the bulk of current liabilities to assess if these are trade payables, loans, or related party debts.
• Assess cash flow projections and client contracts to determine if the company has a viable plan to rectify liquidity and solvency issues.
• Review management strategy and operational changes planned or implemented to return to profitability.
• Consider whether any contingent liabilities or off-balance-sheet risks exist that may exacerbate financial stress.
• Verify if there are any pending legal or tax issues given the ongoing losses and creditor balances.