Company Number: 14761369

Analysis Date: 2025-07-19 12:14 UTC

1. Risk Rating: MEDIUM
   The company shows positive net current assets and shareholders’ funds, indicating solvency at the reporting date. However, the sharp decline in current assets and net assets between 2024 and 2025 suggests some volatility or reduced liquidity that warrants monitoring.

2. Key Concerns:

• Significant reduction in current assets from £9,285 in 2024 to £1,560 in 2025, reducing liquidity buffers.
• Corresponding drop in net assets from £2,035 to £560 within one year, indicating potential strain on retained earnings or capital.
• Very limited scale of operations (only 2 employees, micro-entity status) could restrict operational flexibility and resilience to market fluctuations.

3. Positive Indicators:

• The company is not overdue on statutory filings (accounts and confirmation statement), suggesting good regulatory compliance and governance.
• Directors appear stable and have professional backgrounds relevant to the business activity (structural engineering and company secretarial duties).
• The company is solvent on the balance sheet date with positive net current assets and no indication of insolvency or administration.

4. Due Diligence Notes:

• Investigate the reason behind the substantial decrease in current assets and net assets in the latest year, including any one-off transactions or asset disposals.
• Review cash flow statements and creditor aging to assess short-term liquidity and payment performance.
• Confirm if the company has any contingent liabilities or off-balance sheet obligations that could impact financial stability.
• Validate the business model and revenue pipeline given the micro scale and recent incorporation date (March 2023).
• Consider background checks on directors for any adverse records beyond what is publicly disclosed.