Company Number: 14391445

Analysis Date: 2025-07-29 16:57 UTC

1. Risk Rating: MEDIUM
   The company shows a marginal net asset position with very low equity (£133) and has increased borrowings secured on tangible assets. While it is current with filings and active, the limited retained earnings and reliance on hire purchase financing indicate moderate financial risk.

2. Key Concerns:

• Low net assets and minimal shareholder funds (£133) suggest limited financial buffer against losses.
• Significant long-term borrowings (£14,676) secured on motor vehicles may constrain financial flexibility.
• Declining cash balances and reduced current assets from prior year increase liquidity risk despite positive net current assets in the latest year.

3. Positive Indicators:

• The company remains compliant with filing deadlines and regulatory requirements, indicating good governance.
• Net current assets have improved from negative to positive, reflecting better short-term liquidity management.
• Tangible asset base has grown, including investment in motor vehicles, supporting operational capacity in electrical installation.

4. Due Diligence Notes:

• Review the terms and repayment schedule of the hire purchase and other borrowings to assess financial obligations and refinancing risk.
• Investigate trade debtor quality and collectability given the drop in debtor balances and presence of other debtors.
• Assess operational cash flow trends and profitability, as no profit and loss data was provided; confirm business sustainability.
• Confirm status of related party loans and any ongoing transactions with key management to evaluate potential financial exposure.