Company Number: 13917769

Analysis Date: 2025-07-29 20:33 UTC

1. Risk Rating: MEDIUM
   The company shows modest net assets and a small negative working capital position in the latest year, indicating some liquidity pressure. The micro-entity status and limited financial disclosure restrict a full assessment, but the decline in shareholders’ funds and current asset coverage relative to liabilities warrant caution.

2. Key Concerns:

• Liquidity Risk: Current liabilities (£9,437) slightly exceed current assets (£9,119) as of 28 Feb 2024, producing a negative net current asset position (-£318), which may challenge short-term cash flow management.
• Declining Net Assets: Shareholders’ funds decreased from £5,668 in 2023 to £2,626 in 2024, suggesting accumulated losses or withdrawals that weaken financial stability.
• Small Scale and Limited Transparency: As a micro-entity with minimal disclosures and no audit, there is limited visibility on profitability, cash flows, or contingent liabilities, increasing uncertainty.

3. Positive Indicators:

• Active Status and Compliance: The company is active with no overdue filings, indicating good regulatory compliance and governance discipline.
• Sole Director and PSC Alignment: A single director who is also the sole person with significant control simplifies management oversight and accountability.
• Consistent Business Activity: The company operates in construction of domestic buildings, a tangible sector potentially supporting stable cash inflows if market conditions remain favorable.

4. Due Diligence Notes:

• Review detailed profit and loss and cash flow information if available outside micro-entity filings to understand sources of net asset decline and operational cash generation.
• Investigate creditor terms and payment cycles to assess liquidity pressures and potential risks of default or supplier disputes.
• Confirm any contingent liabilities or off-balance sheet commitments that could impact solvency.
• Assess business pipeline and client concentration to evaluate revenue sustainability in the construction sector.