Company Number: 12538321

Analysis Date: 2025-07-19 12:05 UTC

1. Risk Rating: MEDIUM
   The company has demonstrated a notable turnaround from negative net assets in previous years to positive net assets in the latest financial year ending 31 March 2024. However, the micro-entity scale, modest equity base (£5,814), and relatively tight net current assets (£7,188) suggest limited financial buffer. The company’s small size and thin capitalization introduce moderate solvency and liquidity risk.

2. Key Concerns:

• Low Capitalization and Equity Base: With total shareholders’ funds at £5,814, the company has limited capacity to absorb financial shocks or losses.
• Volatile Working Capital Position: Prior years showed net current liabilities and negative net assets, indicating periods of liquidity strain. Although improved in 2024, the working capital remains modest relative to liabilities (£40,143 current liabilities).
• Limited Operational Scale: Average headcount of 2 persons and micro-entity status restrict operational scalability and resilience. The company may be vulnerable to business interruptions or a downturn in its niche market of building project development (SIC 41100).

3. Positive Indicators:

• Recent Financial Recovery: The company reversed prior losses, moving from negative net assets (-£2,311 in 2023) to positive net assets (£5,814 in 2024), indicating improved financial health.
• Timely Compliance: No overdue filings; accounts and confirmation statements are up to date, suggesting sound governance and regulatory compliance.
• Stable Management: Directors have been in position since incorporation with no public records of disqualifications or governance issues, promoting continuity.

4. Due Diligence Notes:

• Review detailed profit and loss data (not filed publicly) to understand the drivers behind the significant improvement from losses to profitability.
• Investigate the nature and terms of current liabilities (£40,143) to assess short-term obligations and repayment risk.
• Confirm whether the company has ongoing contracts or pipeline projects supporting revenue sustainability.
• Evaluate dependency on principal directors and any related party transactions, given the small scale and shared address of directors.
• Assess any contingent liabilities or off-balance-sheet commitments not disclosed in the micro-entity accounts.