Company Number: 13888414

Analysis Date: 2025-07-20 16:38 UTC

1. Risk Rating: MEDIUM
   The company shows positive net assets and shareholder funds, but the net current liabilities position and small asset base create some solvency and liquidity concerns. The micro-entity status means limited financial disclosure, restricting full risk assessment.

2. Key Concerns:

• Negative net current assets (working capital deficit) of £7,919 as of 2024 indicates short-term liquidity pressure.
• Very small net asset base (£867) and minimal fixed assets suggest limited buffer against adverse conditions.
• Limited operational scale with only one employee and micro-entity classification, raising questions about business sustainability and growth potential.

3. Positive Indicators:

• The company is current with filing deadlines; no overdue accounts or confirmation statements, indicating regulatory compliance.
• Consistent director and controlling shareholder since incorporation, suggesting stable management.
• Operating in a specific trade niche (plumbing, heat and air-conditioning installation) which may provide steady demand if managed well.

4. Due Diligence Notes:

• Review cash flow statements and turnover figures (not provided) to better assess liquidity and operational performance.
• Investigate reasons for declining fixed assets from 2023 to 2024 and implications for ongoing operations.
• Confirm any contingent liabilities or off-balance sheet commitments that may impact solvency.
• Evaluate customer base and contract stability given the small size and sole employee status.
• Assess director’s background and capacity to scale or sustain the business.