Company Number: 15054018

Analysis Date: 2025-07-20 15:56 UTC

1. Risk Rating: HIGH
   Justification: Despite positive current assets, the company shows net liabilities (-£217) due to significant long-term creditors (£205,000) exceeding net current assets. The company is very young (incorporated 2023), with limited financial history and only two employees. The micro-entity status limits transparency. The large creditor balance relative to assets and negative equity raise solvency concerns.

2. Key Concerns:

• Net liabilities of £217 driven by £205,000 creditors due after more than one year, indicating potential solvency risk if refinancing or cash inflows falter.
• Lack of profit and loss account disclosure reduces visibility on operational performance and cash flow generation.
• Company is newly incorporated with only one year of financial data and minimal fixed assets, limiting ability to assess business sustainability and growth prospects.

3. Positive Indicators:

• Strong current assets (£220,747) exceed current liabilities (£20,986) by a wide margin, indicating short-term liquidity is currently sufficient.
• No overdue filings and compliance with Companies House deadlines suggests good governance and regulatory compliance.
• Ownership and control are concentrated, simplifying decision-making and potentially enabling swift action if financial issues arise.

4. Due Diligence Notes:

• Obtain full profit and loss accounts or management accounts to evaluate operational profitability and cash flow trends.
• Clarify nature and terms of the £205,000 long-term creditor balance to assess refinancing risk and repayment schedule.
• Investigate business model and pipeline for development of building projects to understand revenue generation and sustainability.
• Confirm no director disqualifications or related-party transactions given single director and shareholder control.
• Review bank statements and cash flow forecasts for liquidity adequacy beyond balance sheet snapshot.