Company Number: 13123689

Analysis Date: 2025-07-29 20:02 UTC

1. Risk Rating: MEDIUM
   The company shows a recent deterioration in liquidity, with net current liabilities reported in the latest year, which raises concerns about short-term cash flow. However, positive net assets and ongoing compliance with filing requirements somewhat mitigate immediate solvency fears.

2. Key Concerns:

• Negative Net Current Assets in 2024: The company recorded net current liabilities of £5,467 as of 31 January 2024, indicating potential short-term liquidity issues that could affect its ability to meet immediate obligations.
• Limited Share Capital and Scale: With only £1 share capital and being a micro-entity, the company's financial buffer is minimal, increasing vulnerability to unforeseen expenses or revenue shortfalls.
• Small Asset Base and Employee Count: The company operates with just one employee and relatively low fixed assets, which may limit operational scalability and resilience in a competitive construction/electrical installation sector.

3. Positive Indicators:

• Growing Net Assets: Despite liquidity challenges, net assets improved significantly from £132 in 2023 to £9,093 in 2024, driven by increased fixed assets and shareholder funds, suggesting some reinvestment or capital injection.
• Timely Compliance: The company is up to date with its annual accounts and confirmation statement filings, demonstrating good governance and regulatory compliance.
• Stable Directorship: The sole director has been in place since incorporation with no negative conduct records, indicating continuity in management.

4. Due Diligence Notes:

• Investigate the nature of the increased current liabilities and whether these are short-term debts, trade payables, or other obligations that may impact liquidity.
• Review cash flow statements (if available) for the latest periods to better understand operational cash generation and timing of receivables/payables.
• Assess the sustainability of business operations given the micro-entity scale and single employee, including dependency on key contracts or clients.
• Confirm whether the rise in fixed assets represents capital expenditure or intangible investments, and their liquidity or depreciation profile.
• Monitor for any forthcoming filings given the next accounts and confirmation statement due dates are in late 2025 and early 2026.