Company Number: 14499778

Analysis Date: 2025-07-20 17:06 UTC

1. Risk Rating: HIGH

Justification: The company is newly incorporated (less than 1.5 years old), with minimal net assets (£100) and very limited cash (£8). Current liabilities (£4,256) almost match current assets (£4,356), leaving an extremely narrow working capital buffer (£100). The financial data shows no sign of profitability, and the company operates with a single employee and director. These factors collectively indicate significant solvency and liquidity risks at this early stage.

2. Key Concerns:

• Minimal Net Assets and Working Capital: The company’s net assets of £100 and working capital of only £100 suggest an extremely weak financial position, limiting capacity to absorb operational shocks or delays in debtor collections.
• Low Cash Reserves: Cash on hand is negligible (£8), raising concerns about immediate liquidity and ability to meet short-term obligations without reliance on debtor collections or additional capital injections.
• Early Stage with Limited Financial History: Incorporated in late 2022, the company has less than one full year of trading history, with unaudited accounts and no profit and loss figures disclosed, increasing uncertainty about sustainable operations.

3. Positive Indicators:

• No Overdue Filings: The company is current with its statutory accounts and confirmation statement filings, indicating compliance with regulatory requirements.
• Clear Ownership and Control: A single director (Mr. Danny Collins) holds 75-100% ownership and voting rights, which can simplify decision-making and governance.
• Operating in a Defined Niche: The SIC codes reflect specialized construction activities, which, if managed well, might offer growth opportunities in a defined market segment.

4. Due Diligence Notes:

• Profit and Loss Details: Obtain or review the profit and loss account to assess revenue generation, gross margins, and operating expenses.
• Debtor Quality and Collectability: Investigate the nature and aging of the £4,348 debtor balance to evaluate cash flow risk.
• Capital Structure and Funding Plans: Clarify whether additional equity injections, credit facilities, or director loans are planned to support liquidity.
• Director and Management Background: Conduct background checks on Mr. Collins to assess experience and reputation in the construction sector.
• Contractual Pipeline and Order Book: Understand current contracts in place, project pipeline, and expected cash inflows to evaluate operational sustainability.