Company Number: 12699668

Analysis Date: 2025-07-20 14:59 UTC

1. Risk Rating: MEDIUM
   The company shows improvement in net assets and working capital over recent years, which is positive for solvency. However, the presence of significant long-term liabilities and relatively small shareholder funds compared to fixed assets suggests some financial leverage and potential solvency risk.

2. Key Concerns:

• Long-term Creditors: The company has increased creditors falling due after more than one year to £178,541 as of 2024, significantly higher than prior years. This could indicate reliance on debt financing that may pressure future cash flows.
• Net Current Assets Fluctuations: While net current assets improved to £65,176 in 2024, prior years show tighter liquidity positions. The company should be monitored for liquidity adequacy to cover short-term obligations.
• Limited Operating Scale: With only one employee and micro-entity reporting, there is limited transparency on operational scale and profitability, raising questions about business sustainability and growth prospects.

3. Positive Indicators:

• Improving Net Assets: Net assets increased markedly from £15,153 in 2023 to £134,205 in 2024, demonstrating growing equity and a stronger balance sheet.
• No Overdue Filings: The company’s accounts and confirmation statements are up to date, indicating compliance with statutory requirements and good governance in this regard.
• Significant Asset Base: The fixed assets rose substantially to £247,570, indicating investment in equipment or property that supports its core activity in machinery leasing and civil engineering projects.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors to assess repayment schedules and interest obligations.
• Review cash flow statements or management accounts (if available) to evaluate liquidity trends and operational cash generation.
• Understand the business model and client base to assess revenue stability and growth potential since profitability data is not provided.
• Confirm whether there are any contingent liabilities or off-balance sheet obligations.
• Verify the background and qualifications of the sole director, given the operational scale and decision-making concentration.