Company Number: 13106811

Analysis Date: 2025-07-20 13:59 UTC

1. Risk Rating: MEDIUM
   The company shows ongoing net current liabilities and declining net assets over recent years, indicating moderate solvency and liquidity pressures. However, it remains active with no overdue filings and no formal insolvency proceedings.

2. Key Concerns:

• Persistent Negative Net Current Assets: Net current liabilities are around £5,800 as of March 2024, similar to prior years, indicating working capital deficiency that may strain short-term obligations.
• Declining Net Assets: Shareholders’ funds have fallen from £4,580 in 2021 to £1,789 in 2024, indicating erosion of equity and potential losses or asset impairments.
• Unclear Profitability: The absence of a profit and loss account in filings limits assessment of operational performance and cash flow generation, raising uncertainty about ongoing sustainability.

3. Positive Indicators:

• Adequate Cash Reserves: Cash balances increased to £8,680 in 2024, improving liquidity relative to prior years despite net current liability.
• No Overdue Filings or Compliance Issues: Accounts and confirmation statements are up to date, suggesting good governance and regulatory compliance.
• Specialist Director: The sole director is a Chartered Structural Engineer, indicating relevant expertise aligned with the company’s consulting activities.

4. Due Diligence Notes:

• Obtain and review management accounts or profit and loss details to assess operating profitability and cash flow trends.
• Investigate the nature and timing of current liabilities driving negative working capital, including any creditor payment terms or restructuring plans.
• Confirm the status and collectability of debtors, especially given the increase noted from £2,363 to £4,505, to evaluate cash conversion risk.
• Review provisions for liabilities (£1,782) for potential contingent risks or impending costs.