Company Number: 13455493

Analysis Date: 2025-07-20 18:06 UTC

1. Risk Rating: HIGH
   The company exhibits signs of financial distress, notably negative net assets and net current liabilities in the most recent financial year, indicating solvency concerns.

2. Key Concerns:

• Solvency Issues: As of 30 June 2024, the company reported net liabilities (£-678) and negative shareholders' funds (£-680), a deterioration from a modest positive net asset position in prior years, suggesting the company may struggle to meet its long-term obligations.
• Liquidity Concerns: Negative net current assets (£-2,747) indicate working capital deficits, with current liabilities exceeding current assets, which could impact the company’s ability to cover short-term debts and operational expenses.
• Declining Debtor and Creditor Balances: A significant reduction in debtors (from £50,846 in 2023 to £15,943 in 2024) alongside a reduction in creditors suggests possible difficulties in maintaining consistent revenue streams or changes in credit terms that need further investigation.

3. Positive Indicators:

• No Filing or Compliance Issues: The company’s accounts and confirmation statements are up to date with no overdue filings, indicating compliance with statutory requirements.
• Stable Directorship and Control: The company has a single director with clear ownership and control structure, which can simplify governance and decision-making.
• Business Activity: The company operates in building project development (SIC 41100), a sector that can generate significant value if projects succeed, suggesting potential for operational recovery.

4. Due Diligence Notes:

• Investigate the cause of the sharp decline in debtors and whether this reflects reduced sales, improved collections, or write-offs.
• Review cash flow statements and bank statements to assess actual liquidity and the company’s ability to pay current liabilities as they fall due.
• Examine any contingent liabilities or off-balance sheet obligations that may impact solvency.
• Confirm the nature and timing of corporation tax liabilities (£17,560 in 2024) to understand tax exposure and payment plans.
• Assess the company’s contract pipeline, profitability of current projects, and future revenue prospects to gauge operational sustainability.
• Verify if any director loans or related party transactions exist beyond the current reporting period.
• Consider the impact of the company’s small size (small company exemption used) on financial resilience and reporting transparency.