Company Number: 12759568

Analysis Date: 2025-07-20 15:48 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns as evidenced by its negative net assets and net current liabilities in the latest financial year. The sharp deterioration in financial position from previous years signals elevated risk.

2. Key Concerns:

• Negative Net Assets and Net Current Liabilities (2024): The balance sheet shows a reversal from positive net assets (£1,694 in 2023) to negative net assets (-£3,523) and a worsening liquidity position, with current liabilities exceeding current assets. This indicates potential inability to meet short-term obligations.
• Declining Fixed Assets and Total Assets: Fixed assets have reduced from £14,381 in 2023 to zero in 2024, and total assets less current liabilities dropped substantially, suggesting asset disposals or write-downs impacting operational capacity and security for creditors.
• Small Scale and Concentrated Control: The company remains micro-sized with minimal share capital (£1) and a single director/PSC controlling 75-100% ownership. This concentration increases governance and operational risk, especially if financial distress worsens.

3. Positive Indicators:

• Timely Filings and Compliance: No overdue accounts or confirmation statements, indicating regulatory compliance and up-to-date statutory filings.
• Increasing Employee Count: A rise in average employees from 1 to 2 suggests some operational growth or scaling.
• Established Market Niche: Operating in plumbing and electrical installation with active status since 2020, indicating ongoing business activity in essential trades.

4. Due Diligence Notes:

• Investigate the reason for the complete write-off or disposal of fixed assets between 2023 and 2024 and its impact on business operations and revenue generation.
• Review cash flow statements and creditor arrangements to assess short-term liquidity management and risk of default.
• Confirm any contingent liabilities or off-balance-sheet obligations not disclosed in micro-entity accounts.
• Assess director’s strategic plans to restore financial health and whether additional capital injections or financing are planned.
• Validate the accuracy of financial data and whether any restatements or adjustments occurred post-filing.