Company Number: 13971391

Analysis Date: 2025-07-29 19:36 UTC

1. Risk Rating: MEDIUM
   The company shows a moderate risk profile primarily due to current liabilities exceeding current assets, indicating potential liquidity constraints. However, it remains solvent on a net asset basis with positive shareholders' funds and no signs of insolvency or overdue filings.

2. Key Concerns:

• Liquidity Shortfall: Current liabilities (£41,019) exceed current assets (£31,383), resulting in negative net working capital, which may pressure short-term cash flows.
• Prepayments and Accrued Income: A significant amount (£49,096) recorded under prepayments and accrued income raises questions about timing and collectability, impacting working capital assessment.
• No Employees Reported: The company has zero employees on average, which may indicate reliance on contractors or limited operational capacity that could affect business sustainability.

3. Positive Indicators:

• Growing Shareholders’ Funds: Equity increased from £25,229 in 2023 to £40,107 in 2024, reflecting retained earnings or capital injections enhancing solvency.
• Compliance and Timeliness: All statutory filings, including accounts and confirmation statements, are up to date, demonstrating good regulatory compliance and governance.
• Owner Control and Stability: The sole significant controller holds 75-100% shares and voting rights, providing clear leadership and decision-making authority.

4. Due Diligence Notes:

• Clarify the nature and recoverability of prepayments and accrued income to assess true liquidity position.
• Review cash flow statements and bank balances to understand actual liquidity and ability to meet short-term obligations.
• Investigate business model given absence of employees—determine if subcontracting is the norm and assess related operational risks.
• Confirm any off-balance sheet liabilities or contingent risks not disclosed in micro-entity accounts.
• Assess director background and experience further given the company’s recent incorporation and construction industry risks.