Company Number: 13805964

Analysis Date: 2025-07-29 12:07 UTC

1. Risk Rating: LOW
   The company demonstrates a positive net asset position and improved net current assets in the latest financial year, with no overdue filings or indications of regulatory non-compliance. Its financials suggest adequate solvency and liquidity for its scale of operations.

2. Key Concerns:

• The company is relatively young (incorporated late 2021), so its operational track record is short, which may limit long-term sustainability assessment.
• The current liabilities in 2022 were significantly higher than current assets, indicating potential liquidity stress that has only recently reversed.
• Limited financial disclosures and absence of detailed profit and loss figures reduce transparency into profitability and cash flow dynamics.

3. Positive Indicators:

• Net current assets improved from negative £3,803 in 2022 to positive £1,930 in 2023, supported by a strong cash balance (£13,109).
• Net assets more than doubled from £7,561 in 2022 to £17,893 in 2023, indicating strengthening equity base.
• No overdue accounts or confirmation statements, reflecting compliance with statutory filing requirements.
• Directors appear stable with no indications of disqualifications or governance issues.
• The company operates in a steady trade sector (plumbing and heating installation) with a presumably consistent demand profile.

4. Due Diligence Notes:

• Review detailed profit and loss data to assess profitability trends and cash flow sufficiency.
• Investigate the cause and resolution of the prior year’s liquidity deficit to confirm the sustainability of the current positive working capital.
• Confirm customer concentration risk and debtor aging to evaluate cash flow predictability.
• Examine any contingent liabilities or off-balance sheet exposures not visible in the limited accounts.
• Validate the accuracy and completeness of fixed assets and stock valuations given their small scale relative to the balance sheet.