Company Number: 14719862

Analysis Date: 2025-07-29 18:56 UTC

1. Risk Rating: HIGH
   The company shows significant net current liabilities and negative shareholders’ funds within its first financial year, indicating solvency concerns. Current liabilities exceed current assets by approximately £45k, and net assets are negative, suggesting the company may struggle to meet short-term obligations.

2. Key Concerns:

   • Negative Net Assets and Working Capital Deficit: Net current liabilities of £45,338 and net assets of £45,099 negative indicate potential solvency risk and insufficient liquid resources to cover immediate debts.
   • High Short-term Creditors: Creditors due within one year amount to £289,171, which is substantially higher than current assets of £243,833, mainly composed of stock (£221,995) that may not be readily convertible to cash.
   • Concentration of Control and Director Turnover: Significant control is held by a small group of related persons (Etheridge family). The director Curtis John Etheridge has multiple appointment and resignation dates within a short period, which could imply governance instability.

3. Positive Indicators:

   • Compliance with Filing Obligations: The company has filed accounts and confirmation statements on time with no overdue filings, demonstrating regulatory compliance.
   • Clear Accounting Policies and Small Company Regime Adoption: The accounts are prepared under FRS 102 and utilize the small companies exemption, indicating adherence to UK accounting standards.
   • Active Operational Status and Industry Focus: The company is active and engaged in domestic building construction, a sector with consistent demand, and employs an average of 3 persons, suggesting operational activity.

4. Due Diligence Notes:

   • Assess Liquidity of Stock: Investigate the nature and liquidity of the stock (land and construction costs) to determine if this asset can be converted to cash in the short term.
   • Review Payment Terms and Creditors’ Composition: Analyze creditor aging and payment terms to understand cash flow pressures and creditor relationships.
   • Examine Director Changes: Clarify reasons for repeated resignations and reappointments of Curtis John Etheridge to assess governance risks.
   • Evaluate Contract Pipeline and Revenue Recognition: Since turnover is recognized based on contract completion, review the pipeline of contracts and revenue recognition policies for sustainability.