Company Number: 13804641

Analysis Date: 2025-07-29 20:54 UTC

1. Risk Rating: HIGH
   The company exhibits significant liquidity and solvency concerns, evidenced by negative net current assets and a substantial decrease in net assets over the past year. This raises questions about its ability to meet short-term obligations and sustain operations.

2. Key Concerns:

• Liquidity Risk: As of 31 December 2023, current liabilities (£27,779) substantially exceed current assets (£18,073), resulting in net current liabilities of £8,565, which indicates potential cash flow difficulties.
• Declining Net Assets: Net assets dropped sharply from £10,176 at the end of 2022 to just £1,092 in 2023, indicating erosion of capital and potential solvency issues.
• Small Scale and Limited Financial Transparency: Classified as a micro-entity with no audit and limited financial detail, restricting the ability to fully assess operational performance and risks.

3. Positive Indicators:

• Compliance with Filings: The company is current with its statutory accounts and confirmation statement filings, showing no governance or regulatory compliance issues to date.
• Stable Management: The same two directors have been in place since incorporation, suggesting stable leadership.
• Niche Industry Focus: Engagement in roofing and joinery installation (SIC codes 43910 and 43320) could provide steady demand, assuming local market conditions are favorable.

4. Due Diligence Notes:

• Review cash flow statements (if available) to assess the company’s ability to manage short-term liabilities and working capital needs.
• Investigate reasons behind the significant increase in current liabilities in 2023 compared to prior years.
• Confirm whether there are any contingent liabilities or off-balance-sheet commitments that might exacerbate solvency risks.
• Assess contracts, client base, and order book to determine operational sustainability and future revenue streams.
• Examine directors’ plans or strategies to address the deteriorating financial position.