Company Number: 14528039

Analysis Date: 2025-07-29 13:43 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks, evidenced by persistent negative net current assets and shareholders’ funds over consecutive years since incorporation. The liabilities substantially exceed current assets, indicating financial stress.

2. Key Concerns:

• Negative Net Current Assets & Shareholders’ Funds: For 2024, net current liabilities are £9,259 with shareholders’ funds at -£1,106, worsening from previous years, signaling inability to meet short-term obligations.
• High Current Liabilities Relative to Cash and Debtors: Current liabilities of £9,845 far exceed current assets of £586, with very low cash balances (£298), suggesting severe liquidity constraints.
• Operating History and Scale: The company was only incorporated in December 2022 and operates with a single director and employee, which may indicate limited operational capacity and unproven business sustainability.

3. Positive Indicators:

• No Overdue Filings: The company is up to date with statutory accounts and confirmation statement filings, indicating compliance with regulatory requirements.
• Tangible Fixed Assets Growth: Net book value of tangible fixed assets increased to £8,154 in 2024 from £5,700 in 2023, suggesting some investment in operational capacity.
• Director Control and Stability: The sole director, who is also the majority shareholder, appears stable with no adverse conduct records noted.

4. Due Diligence Notes:

• Investigate the nature and terms of the current liabilities, especially the large proportion classified as "other creditors" (£6,135) and taxation/social security (£3,090), to assess repayment risk and potential enforcement actions.
• Review cash flow statements and income performance (not filed due to small company exemption) to understand operational cash generation and dependency on external funding.
• Assess the business plan, contracts, and pipeline in the civil engineering sector to evaluate prospects for reversing current financial deficits.
• Clarify whether the director or related parties have provided loans or guarantees that may affect financial stability.
• Confirm absence of director disqualifications or regulatory concerns beyond Companies House filings.