Company Number: 14673979

Analysis Date: 2025-07-29 14:46 UTC

1. Risk Rating: LOW to MEDIUM
   The company is newly incorporated (Feb 2023) with its first accounting period ending March 2024. It shows positive net assets (£376k) and net current assets (£139k), indicating initial financial stability. However, as a start-up with unaudited accounts and a short trading history, some caution remains.

2. Key Concerns:

• Limited financial history: Only one accounting period; lacking trend data to assess operational sustainability and profitability.
• Significant debt: Non-current liabilities of £330k against total net assets of £376k; the nature and terms of these borrowings require scrutiny for solvency risk.
• Concentrated control: Two directors each hold 25-50% shares and voting rights, potentially limiting governance diversity and increasing operational risk if key individuals leave.

3. Positive Indicators:

• Healthy working capital: Current assets exceed current liabilities by £139k, indicating ability to cover short-term obligations.
• Tangible asset base: Substantial fixed assets (£582k) primarily in motor vehicles and other equipment, supporting operational capacity in construction/installations.
• Compliance: No overdue filings, confirmation statement up to date, and accounts filed within deadlines, suggesting good regulatory compliance so far.

4. Due Diligence Notes:

• Investigate the terms, interest rates, and repayment schedules of the £330k long-term liabilities to evaluate refinancing or default risk.
• Review cash flow statements or management accounts (if available) to assess liquidity beyond the balance sheet snapshot, particularly cash generation from operations.
• Understand customer base and contract pipeline in the construction installation sector to gauge revenue sustainability and debtor collectability given high trade debtors (£665k).
• Confirm the independence and background of directors to assess governance quality and potential conflicts of interest given shared family names and ownership.
• Consider obtaining audited accounts or at least a review engagement in future to enhance financial reliability.