Company Number: 15161859

Analysis Date: 2025-07-20 17:36 UTC

1. Risk Rating: HIGH
   The company shows net liabilities of £28,328 despite positive net current assets, indicating solvency concerns primarily due to significant long-term creditors. Being newly incorporated with a single financial year and limited operational history further elevates risk.

2. Key Concerns:

• Negative net assets (£28,328) suggest the company’s total liabilities exceed its total assets, raising questions about long-term solvency and financial stability.
• Significant long-term liabilities (£154,967) against relatively modest current assets (£151,365) point to potential difficulty in meeting obligations after one year.
• Limited operational history (incorporated in September 2023, first accounts for a ~1-year period) means lack of historical financial performance data to assess sustainability.

3. Positive Indicators:

• The company has filed accounts and confirmation statements on time, demonstrating regulatory compliance to date.
• Net current assets are positive (£126,639), suggesting that in the short term the company can meet its immediate liabilities.
• Small employee base (average 2) may imply low fixed overheads, potentially aiding operational flexibility.

4. Due Diligence Notes:

• Investigate the nature and terms of long-term liabilities (£154,967) to assess repayment schedule, interest burden, and any associated covenants.
• Review business plan, revenue streams, and cash flow forecasts to evaluate the company’s ability to improve solvency and generate sustainable profits.
• Confirm the ownership and control structure’s impact on financing and operational decisions since all PSCs hold significant control and are also directors.
• Assess market conditions and competitive positioning within the wholesale of wood and construction materials sector (SIC 46730) for growth prospects.
• Verify that no director disqualifications or compliance issues exist beyond those disclosed.