Company Number: 12625795

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

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns as evidenced by negative net assets of £18,879 at the latest year-end (May 2024) and a substantial deterioration from a positive net asset position of £9,459 in the prior year. Net current liabilities have increased sharply to £28,477 from a near-neutral position the previous year, indicating liquidity stress.

2. Key Concerns:

• Solvency deterioration: The company moved from positive net assets in 2023 to a negative net asset position in 2024, indicating accumulated losses or increased liabilities exceeding assets.
• Liquidity shortfall: Cash and current assets are insufficient to cover current liabilities, with cash on hand dropping drastically from £13,295 to £306, suggesting potential cash flow difficulties.
• No employees reported: The company has zero employees listed, which may reflect operational inactivity or reliance on subcontractors, raising concerns about the sustainability of operational capacity.

3. Positive Indicators:

• No overdue filings: The company is up to date with both accounts and confirmation statement filings, indicating compliance with statutory requirements.
• Single, consistent director: The presence of a single director with stable appointment since incorporation may reflect stable governance at the management level.
• Industry classification: The company is engaged in construction of domestic and commercial buildings, a sector with steady demand, which could support future recovery if financial issues are addressed.

4. Due Diligence Notes:

• Investigate the causes of the sharp deterioration in net assets and liquidity between 2023 and 2024, including any large liabilities or write-offs.
• Review debtor balances (£20,807) for collectability and any corresponding provisions for bad debts.
• Clarify the company's operational model given zero employees reported and examine the sustainability of current operations and contracts.
• Assess the nature and terms of other creditors (£48,765) to understand short-term obligations and payment schedules.
• Review director’s management plans or restructuring strategies to address negative equity and liquidity issues.