Company Number: 14120594

Analysis Date: 2025-07-29 19:59 UTC

1. Risk Rating: LOW

Justification: Mortons Heating Limited demonstrates solid net asset growth, healthy working capital, and no overdue filings. The company is solvent with net assets increasing from £18,233 in 2022 to £51,790 in 2025, suggesting retained profitability and capital accumulation. Current assets substantially exceed current liabilities, indicating strong short-term liquidity. No negative indicators such as overdue accounts, director disqualifications, or liquidation status are present.

2. Key Concerns:

• Reliance on a single director and controlling shareholder (Mr. Luke Woodward) may pose governance and continuity risk.
• Deferred tax liability remains notable (£1,223 in 2025), requiring monitoring for potential future cash outflows.
• Limited fixed assets and small scale of operations (only 2 employees) may constrain operational capacity and scalability.

3. Positive Indicators:

• Consistent and substantial growth in net current assets from £7,433 in 2022 to £46,576 in 2025 reflects improving liquidity.
• Positive cash balance with significant increase from £1,199 to £24,157 over three years.
• Timely filing of statutory accounts and confirmation statements, demonstrating regulatory compliance.
• The company operates in a stable industry sector (plumbing, heating, and air-conditioning installation) with steady demand.
• No audit requirement under small companies regime indicates manageable scale and complexity.

4. Due Diligence Notes:

• Review detailed profit and loss accounts and turnover figures to confirm revenue growth and profitability trends.
• Assess customer debtor aging and collection practices since debtors increased substantially, ensuring no significant credit risk.
• Evaluate director’s loan account status and terms since it reduced from £4,475 in 2024 to £341 in 2025.
• Investigate deferred tax liability composition and likelihood of realization of deferred tax assets.
• Confirm any contingent liabilities or off-balance sheet obligations not apparent in current filings.
• Consider operational plans given limited fixed asset base and small workforce.