NORTH BOUND DRIVEWAYS LTD

Executive Summary

North Bound Driveways Ltd is an early-stage private limited company showing encouraging signs of financial improvement in its second full year, with positive net assets and working capital. However, historical liquidity weaknesses and outstanding long-term liabilities warrant cautious monitoring. The company complies with filing requirements and is gradually expanding operations, but further due diligence on cash flow and debt profile is recommended to confirm sustainability.

NORTH BOUND DRIVEWAYS LTD - Analysis Report

Company Number: 14349184

Analysis Date: 2025-07-20 13:01 UTC

1. Risk Rating: MEDIUM
   The company shows a recent but positive improvement in net assets and working capital, indicating some progress in financial stability. However, the presence of long-term liabilities and historical periods of negative net current assets introduce solvency and liquidity concerns typical of a young business still establishing its footing.

2. Key Concerns:

• Long-term Liabilities: As of 2024 year-end, the company reports £7,831 in creditors falling due after more than one year, which may strain future cash flows if not well managed.
• Historical Liquidity Issues: In previous years (2022 and 2023), net current assets were negative (£8,356), suggesting prior difficulties in meeting short-term obligations.
• Limited Operating History: Incorporated in late 2022, the company has limited financial history to assess sustained operational stability and profitability.

3. Positive Indicators:

• Improved Financial Position: The 2024 accounts show net assets of £17,124 and positive net current assets of £5,056, a marked improvement from the prior years’ net assets of only £140.
• Growing Workforce: Employee count increased from 2 to 3, indicating some business expansion and operational scaling.
• No Overdue Filings: All statutory accounts and confirmation statements are filed on time, demonstrating good regulatory compliance and governance discipline.

4. Due Diligence Notes:

• Review the nature and terms of the long-term liabilities to assess repayment risk and impact on cash flow.
• Examine detailed cash flow statements or management accounts (if available) to understand liquidity trends beyond balance sheet snapshots.
• Investigate revenue growth, client base stability, and contract terms especially given the SIC codes related to landscape and building development activities.
• Consider the director’s background and related party transactions, particularly as the sole director and significant controller is also a builder by occupation.
• Monitor upcoming filings and company announcements for any changes in financial health or operational direction.