Company Number: 13921246

Analysis Date: 2025-07-29 12:09 UTC

1. Risk Rating: HIGH

The company shows a deteriorating financial position with net liabilities reported in the latest accounts, indicating solvency concerns. Its micro-entity size and limited financial disclosures restrict comprehensive assessment but available data point to significant risk.

2. Key Concerns:

• Negative Net Assets: The 2024 accounts report net liabilities of £1,360, down from positive net assets of £4,008 the previous year, reflecting erosion of shareholder funds.
• Working Capital Deficit: Current liabilities (£26,502) exceed current assets (£19,277), showing negative net current assets of £7,225, implying liquidity stress and potential cash flow difficulties.
• Limited Scale and Operating History: Incorporated in 2022, the company is very young with only two employees, and financial data shows small asset base and limited capital, which may affect operational stability and resilience.

3. Positive Indicators:

• No Filings Overdue: Both accounts and confirmation statement filings are up to date, demonstrating compliance with statutory requirements.
• Directors and PSCs Aligned: The two directors are also the significant shareholders, suggesting clear governance and control structure.
• Industry Sector: Electrical installation is a specialized trade with ongoing demand, which could support business sustainability if managed well.

4. Due Diligence Notes:

• Investigate Cash Flow: Review cash flow statements and bank balances to assess short-term liquidity beyond balance sheet snapshot.
• Examine Trade Creditors and Debtors: Understand the nature and ageing of current liabilities and assets to evaluate working capital quality.
• Director and Shareholder Backgrounds: Given the small ownership structure, check for any past directorship issues or financial difficulties.
• Future Business Plans and Pipeline: Assess contracts, revenue projections, and management strategy to gauge operational viability.
• Confirm Audit Exemptions and Accounting Policies: Ensure accounting choices do not obscure financial risks.