Company Number: 15042116

Analysis Date: 2025-07-29 14:54 UTC

1. Risk Rating: MEDIUM
   Justification: JW ROOFING SERVICES (NW) LTD is a newly incorporated micro-entity with a positive net current asset position and no overdue filings, indicating initial compliance and liquidity. However, the presence of significant long-term creditors relative to net assets and limited equity poses moderate solvency concerns typical for a start-up in this sector.

2. Key Concerns:

• Substantial long-term liabilities (£98,124) compared to modest net assets (£4,032) suggest potential solvency pressure if cash flows do not improve.
• The company is less than two years old, limiting historical financial performance data and increasing operational risk.
• Directors have no stated occupations beyond their company roles, which may raise questions about operational experience and management depth.

3. Positive Indicators:

• Strong net current assets (£96,843) indicate short-term liquidity to meet immediate obligations.
• No overdue accounts or confirmation statements, demonstrating regulatory compliance and good governance to date.
• Reasonable employee base (7 employees) for a micro-entity suggests operational activity and capacity.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors to assess refinancing risk or covenant constraints.
• Review cash flow statements and projections to confirm ongoing liquidity and ability to service debts.
• Evaluate the management team's track record and operational plan given the company’s infancy and director profiles.
• Confirm whether any related party transactions or guarantees exist that could impact financial stability.