Company Number: 13271960

Analysis Date: 2025-07-20 17:55 UTC

1. Risk Rating: HIGH
   The company exhibits persistent negative net assets and net current liabilities, indicating solvency issues. The small scale of operations and limited capital base further exacerbate financial vulnerability.

2. Key Concerns:

• Negative Net Assets: Consistent net liabilities of approximately £1,981 as of 31 March 2024 suggest the company’s liabilities exceed its assets, posing solvency risks.
• Working Capital Deficit: Negative net current assets (around -£6,481 in 2024) indicate insufficient short-term assets to cover liabilities, leading to liquidity concerns.
• Minimal Equity and Share Capital: Share capital stands at only £1.00, and shareholders’ funds are negative, limiting the company’s ability to absorb losses or raise additional capital.

3. Positive Indicators:

• Active Status and Compliance: The company is currently active with no overdue accounts or confirmation statement filings, demonstrating regulatory compliance.
• Single Director with Relevant Occupation: The director’s occupation as a carpenter aligns with the company’s joinery installation business, suggesting operational knowledge and focus.
• Micro-Entity Filing: The company is small enough to benefit from reduced filing requirements, potentially lowering administrative burdens.

4. Due Diligence Notes:

• Investigate the company’s cash flow statements or management accounts to assess short-term liquidity and operating cash generation.
• Clarify the nature and origin of current liabilities to determine if they are trade payables, loans, or related party debts.
• Review any creditor arrangements or payment plans that may affect solvency and operational continuity.
• Assess whether the director has plans or resources to inject additional capital or restructure the company to restore financial health.
• Consider any contingent liabilities or off-balance-sheet commitments that could further impact financial stability.