Company Number: 13133945

Analysis Date: 2025-07-20 11:02 UTC

1. Risk Rating: LOW

Justification: KWASNIK79 LTD is a micro-entity operating in the construction of domestic buildings sector, with modest but positive net current assets and net assets over the last four years. The company is active, compliant with filing deadlines, and has no overdue accounts or confirmation statements. The shareholder funds have increased slightly, and there is no indication of insolvency or liquidation.

2. Key Concerns:

• Limited Scale: The company’s financial footprint is very small, with net assets under £3,000 and minimal share capital (£100), which may restrict its capacity to absorb financial shocks or scale operations.
• Current Liabilities Increase: While previous years showed no current liabilities, the 2024 accounts report £13,285 in current liabilities, which might indicate increased short-term obligations that need monitoring to ensure timely settlement.
• Employee Growth and Operational Risk: The headcount doubled from 1 to 2 employees, which may increase operational costs. Given the small asset base, this could pressure cash flows if revenues do not correspondingly increase.

3. Positive Indicators:

• Consistent Compliance: No overdue filings or compliance issues are noted, which suggests good regulatory governance.
• Positive Net Current Assets: The company maintains positive working capital, indicating an ability to meet short-term liabilities.
• Gradual Growth: The increase in current assets and net assets year-on-year suggests some operational progression.

4. Due Diligence Notes:

• Investigate the nature and terms of the current liabilities introduced in 2024 to assess liquidity risk.
• Review revenue trends and profitability since these are not provided but critical to understanding operational sustainability.
• Assess the business model and client base to determine the company's resilience in the construction sector, especially given its micro status and limited capital.
• Confirm director’s background and any potential related party transactions given the single director structure.