Company Number: 13256573

Analysis Date: 2025-07-20 16:39 UTC

1. Risk Rating: HIGH
   Justification: The company shows persistent net current liabilities over multiple years, indicating liquidity stress. The net assets are minimal and stagnant, signaling limited financial buffer to absorb losses or meet obligations. Furthermore, the micro-entity scale with only two employees and nominal share capital suggests a very small operational base.

2. Key Concerns:

• Liquidity Deficit: Net current liabilities have increased to £4,885 as of 2024, worsening from previous years, indicating the company may struggle to meet short-term obligations.
• Minimal Capital and Reserves: Shareholders’ funds remain extremely low (£122), reflecting very limited equity cushion and potential solvency risks if losses occur.
• Operational Scale and Sustainability: The company employs only two people and reports very limited fixed and current assets, raising questions about its ability to scale or sustain operations long-term in a competitive construction market.

3. Positive Indicators:

• Compliance with Filings: Accounts and confirmation statements are up to date with no overdue filings, indicating regulatory compliance and active governance.
• Stable Director and PSC Structure: The directors and persons with significant control are consistent, with no resignations or red flags noted, suggesting stable management.
• Modest Asset Growth: Fixed assets have increased modestly from £2,131 to £5,007, which might indicate some investment in operational capacity.

4. Due Diligence Notes:

• Investigate the nature and timing of current liabilities to assess liquidity risk in detail — are these trade payables, loans, or other obligations?
• Review cash flow statements or bank statements if available to confirm actual cash inflows and outflows and assess working capital management.
• Understand the business model and contracts to gauge revenue stability and prospects for scaling beyond micro-entity status.
• Confirm absence of director disqualifications or legal proceedings that could impact governance or operational continuity.
• Evaluate reasons behind the company name change shortly after incorporation and any impact on business strategy or reputation.