Company Number: 14548813

Analysis Date: 2025-07-29 12:49 UTC

1. Risk Rating: HIGH
   The company demonstrates significant liquidity and solvency concerns. Despite positive net assets due to fixed assets, the current liabilities vastly exceed current assets, resulting in large net current liabilities that suggest short-term financial strain.

2. Key Concerns:

• Severe Working Capital Deficit: Net current assets are deeply negative (£-2.98m in 2024), indicating the company may struggle to meet short-term obligations as current liabilities are nearly 17 times greater than current assets.
• Asset-Liability Mismatch: The balance sheet relies heavily on fixed assets (£3.3m), but these are not readily convertible to cash, raising doubts about liquidity and operational cash flow sufficiency.
• Limited Financial Transparency: The company has not included profit and loss accounts in its micro-entity filings, restricting visibility into profitability, cash flows, or revenue trends.

3. Positive Indicators:

• Net Asset Growth: Shareholders’ funds have increased from £172,592 in 2023 to £320,346 in 2024, showing some growth in equity.
• No Overdue Filings: Both accounts and confirmation statements are filed on time, indicating compliance with statutory reporting requirements.
• Stable Ownership and Management: Directors and significant controllers have remained consistent, with no indications of director disqualifications or governance issues.

4. Due Diligence Notes:

• Investigate Nature and Liquidity of Fixed Assets: Determine whether fixed assets are productive or easily realizable in distress scenarios.
• Obtain Profit & Loss and Cash Flow Data: Since P&L is not filed, request internal management accounts or supplemental financial information to assess operational performance and cash generation.
• Review Debt Composition and Maturity: Examine the terms, interest obligations, and maturity profile of the large current liabilities to understand refinancing risk and potential covenant breaches.
• Assess Business Model Sustainability: Evaluate contracts, revenue streams, and market position in the civil engineering sector to judge long-term viability given the financial structure.