Company Number: 14195209

Analysis Date: 2025-07-20 18:34 UTC

1. Risk Rating: HIGH
   The company displays significant solvency and liquidity concerns, with persistent negative net assets and net current liabilities worsening over the last two years. The absence of external liabilities beyond director loans and minimal cash reserves further elevates risk.

2. Key Concerns:

• Negative Equity and Working Capital Deficit: The company’s net assets stand at -£8,668 as of June 2024, deteriorating from -£5,553 in 2023, indicating sustained losses and erosion of shareholder funds. Net current liabilities of £8,668 show the company’s current liabilities exceed its current assets substantially.
• Reliance on Director Loans: All current liabilities appear to be loans from directors (£10,663 in 2024, up from £6,420 in 2023), which may signal funding difficulties and potential liquidity constraints if these loans are not on commercial terms or convertible.
• Limited Operational History and Scale: Incorporated in mid-2022, the company is very young with limited financial track record. Cash balances remain low (£1,995 in 2024) despite an increase in employees (3 in 2024 from 0 in 2023), raising questions about operational sustainability and cash flow sufficiency.

3. Positive Indicators:

• Timely Filing Compliance: The company’s accounts and confirmation statements are up to date with no overdue filings, indicating good compliance with statutory requirements.
• Clear Control and Governance: Ownership structure is transparent with two individuals controlling the company; no director disqualifications or governance issues are evident.
• Industry Classification: Engaged in specialized construction activities, a sector with potential for growth if operational issues are addressed.

4. Due Diligence Notes:

• Terms and Sustainability of Director Loans: Clarify the terms of director loans, repayment expectations, interest rates, and whether these are convertible to equity or subject to calls for repayment.
• Cash Flow Projections and Funding Plans: Investigate management’s plans to improve liquidity and working capital, including new contracts, capital injections, or debt restructuring.
• Operational and Contractual Performance: Assess the company's current contracts, profitability projections, and whether operational scale (3 employees) aligns with revenue generation and cost base.
• Profit & Loss Account Details: The profit and loss account was not filed; obtain detailed income and expense data to analyze profitability and margin trends.
• Director Background and Experience: While no disqualifications are recorded, further review of the directors’ track record in construction may provide insight into operational capabilities and risk.