Company Number: 13952983

Analysis Date: 2025-07-20 14:49 UTC

1. Risk Rating: MEDIUM
   Justification: The company shows a positive turnaround in net assets from a slight deficit in its first year to a modest positive net asset position in the latest year. However, the absolute values are very small, and the company operates with minimal working capital and no employees, indicating limited operational scale and potential vulnerability to liquidity shocks.

2. Key Concerns:

• Low absolute cash and current asset base (£19,136 total current assets with only £9,626 cash), which may constrain the company’s ability to meet unexpected demands on liquidity.
• No employees reported, suggesting operational dependency on directors or contractors; this may affect sustainability and scalability.
• The company is very young (incorporated 2022), with only two years of financial data showing marginal profitability and small equity base, which increases business risk due to limited trading history.

3. Positive Indicators:

• Net current assets improved from a negative position (£-23) in year one to a positive £7,304, indicating improved short-term financial health.
• Shareholders’ funds turned positive (£7,304) demonstrating a move towards solvency.
• No overdue filings or compliance issues noted; accounts and confirmation statements are up to date.

4. Due Diligence Notes:

• Verify the nature and reliability of debtors (£9,510), as this represents a significant portion of current assets and liquidity.
• Understand the business model and revenue streams given the absence of employees and the company's SIC code relating to construction holding activities.
• Review cash flow statements and any off-balance sheet liabilities or contingent risks not disclosed in abridged accounts.
• Confirm any related party transactions, especially given that director and significant controllers are closely linked.