Company Number: 14156856

Analysis Date: 2025-07-29 17:39 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with net current liabilities and a drastic decline in net assets over the most recent financial year. The extremely low net asset base (£141) relative to prior year (£1,973) and negative working capital indicate financial distress and potential inability to meet short-term obligations.

2. Key Concerns:

• Negative Net Current Assets: Persistent and worsening net current liabilities (£-2,931 in 2024 vs. £-3,236 in 2023) signal liquidity issues and cash flow problems.
• Erosion of Net Assets: A sharp decline in net assets to only £141 raises doubts about the company’s solvency and capital adequacy.
• Limited Scale and Resources: Micro-entity status with only 2 employees and minimal fixed assets (~£4k) may constrain operational flexibility and ability to withstand financial shocks.

3. Positive Indicators:

• Compliance and Filing: Up-to-date accounts and confirmation statement filings with no overdue reports demonstrate regulatory compliance and good governance practices.
• Active Operational Status: The company is active and engaged in its trade (construction-related SIC codes), with a functioning website and clear contact details, supporting ongoing business activity.
• Stable Management: Directors have continued involvement with no reported disqualifications or governance concerns.

4. Due Diligence Notes:

• Investigate the causes behind the sharp decline in net assets and current assets from 2023 to 2024, including any unusual one-off expenses or write-downs.
• Assess the company’s cash flow forecasts and creditor arrangements to evaluate short-term liquidity and risk of default.
• Review the business model and client base to determine operational sustainability given the small scale and financial position.