Company Number: 13406557

Analysis Date: 2025-07-20 18:23 UTC

1. Risk Rating: MEDIUM
   The company shows modest net current assets and shareholders’ funds, but very low cash balances and significant reliance on directors’ loan accounts creates moderate solvency and liquidity risk.

2. Key Concerns:

• Cash at bank dropped sharply from £209,922 in 2023 to £2,787 in 2024, potentially indicating liquidity pressure or timing issues in cash flow.
• High current liabilities largely comprised of directors’ loan accounts (£218,353 in 2024), suggesting external financing dependency and possible future repayment risk.
• Limited scale (2 employees, micro/small company status) and lack of audit may limit transparency and operational robustness.

3. Positive Indicators:

• Positive net current assets (£17,421) and net assets (£17,421) as of latest accounts indicate solvency above immediate liabilities.
• Consistent filing history with no overdue accounts or confirmation statements demonstrates regulatory compliance.
• The business operates in a defined niche (building completion and finishing), with some level of stock holdings (£234,909 in 2024) which may support ongoing operations.

4. Due Diligence Notes:

• Investigate the reason for the sharp reduction in cash balance in 2024 and assess short-term cash flow management.
• Review the terms, security, and repayment plans related to directors’ loan accounts to understand financial risk exposure.
• Confirm business model viability and contracts pipeline given small employee base and recent incorporation (2021).
• Verify if there are any contingent liabilities or off-balance-sheet obligations not reflected in accounts.
• Assess management experience and governance structures since the company is exempt from audit and has minimal public disclosures.