Company Number: 13655435

Analysis Date: 2025-07-29 19:11 UTC

1. Risk Rating: MEDIUM
   The company shows persistent net current liabilities and low net assets, indicating liquidity constraints. However, it remains active with no overdue filings, directors appear stable, and it operates in a specialized niche, which supports operational continuity.

2. Key Concerns:

• Negative Working Capital: Net current liabilities of approximately £2,462 in 2024 and £2,622 in 2023 suggest ongoing liquidity pressure to meet short-term obligations.
• High Directors’ Loan Account: £18,084 owed to directors is a significant portion of current liabilities, indicating dependence on director funding which may not be sustainable long term.
• Deferred Tax Liability: A deferred tax provision of £780 exists and, while not immediately pressing, it reduces net assets and may impact future cash flows if crystallized.

3. Positive Indicators:

• Stable Ownership and Management: Two directors with significant control since incorporation with relevant professional background (landscape architects) support continuity and expertise.
• No Filing Delinquencies: Both accounts and confirmation statements are filed on time, indicating good regulatory compliance and governance discipline.
• Small Asset Base with Controlled Fixed Assets: Limited fixed assets (~£3,811) reflect low capital intensity, potentially reducing financial risk from depreciation or obsolescence.

4. Due Diligence Notes:

• Review Cash Flow Trends: Analyze detailed cash flow statements to understand timing and sources of liquidity constraints and capacity to repay director loans.
• Assess Customer Payment Patterns: Confirm debtor collectability given increasing trade debtors from £12,835 to £19,358 but persistent liquidity issues.
• Investigate Future Profitability: Explore business pipeline and contract backlog to confirm ability to generate sufficient profits to improve net assets and working capital.
• Clarify Director Loan Terms: Understand repayment terms or potential conversion to equity to gauge impact on solvency.
• Confirm Deferred Tax Liability Origin: Determine whether deferred tax is due to timing differences or potential tax risks.