Company Number: 12524869

Analysis Date: 2025-07-29 13:45 UTC

1. Risk Rating: HIGH
   The company demonstrates persistent net current liabilities and negative working capital over multiple years, indicating a high risk of solvency and liquidity problems. Shareholders' funds are minimal and declining, suggesting limited financial buffer.

2. Key Concerns:

• Negative Net Current Assets: For the latest three years, net current assets are negative (£-22,327 in 2024), indicating that current liabilities exceed current assets, which threatens the company's ability to meet short-term obligations.
• Declining Shareholders’ Funds: Shareholders' funds have fallen from £32,294 in 2021 to just £520 in 2024, pointing to erosion of equity and possible accumulated losses.
• Cash Reserves Shrinking: Cash on hand has declined sharply from £26,476 in 2021 to £4,020 in 2024, which could signal cash flow constraints or difficulties in maintaining liquidity.

3. Positive Indicators:

• Fixed Assets Stability: The company maintains tangible fixed assets of £22,847, a slight increase from prior year, which could be leveraged or sold if necessary.
• Compliance with Filing: There are no overdue filings; accounts and confirmation statements are up to date, indicating regulatory compliance in terms of statutory submissions.
• Single Director Stability: The company has a single director since incorporation with no public disqualifications, suggesting continuity in governance.

4. Due Diligence Notes:

• Investigate the nature and terms of current liabilities—especially the large "other creditors" balance (£31,544) to assess payment terms and risk of default.
• Review the company's cash flow statements (not filed) or internal management accounts to understand operational cash generation and timing of obligations.
• Examine profit and loss performance and reasons for equity erosion, as the income statement is not publicly available.
• Assess any contingent liabilities or related party transactions not reflected in balance sheet figures.
• Evaluate the business model sustainability in the electrical installation sector given the shrinking liquidity and equity base.