Company Number: 13316008

Analysis Date: 2025-07-20 13:30 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, evidenced by negative net assets and increasing net current liabilities. The presence of long-term creditors and a sharp decline in equity indicate elevated financial risk.

2. Key Concerns:

• Negative Net Assets: The company moved from positive net assets (£17,247 in 2023) to a significant net deficit (£-9,286 in 2024), indicating erosion of shareholders’ funds.
• Worsening Liquidity Position: Net current liabilities have more than doubled from £-6,735 in 2023 to £-14,647 in 2024, reflecting increased short-term debt obligations exceeding current assets.
• Long-Term Creditors: The introduction of £12,094 in creditors falling due after more than one year in 2024, which was absent before, suggests new financing or deferred liabilities that may strain future cash flows.

3. Positive Indicators:

• Timely Filing Compliance: Accounts and confirmation statements are filed on time, showing good regulatory compliance.
• Stable Director and PSC Structure: Directors and persons of significant control have been consistent since incorporation, indicating stable governance at the ownership level.
• Micro-Entity Status: The company benefits from simplified reporting requirements, reducing administrative burdens.

4. Due Diligence Notes:

• Investigate causes for the sharp decline in net assets and large increase in current liabilities during the latest financial year. What operational or financial events contributed to this deterioration?
• Review terms and nature of long-term creditors introduced in 2024, including repayment schedules and covenants.
• Assess cash flow performance and working capital management to understand liquidity risks in more detail.
• Evaluate ongoing contracts and revenue streams given the construction industry context and small employee base.
• Confirm no undisclosed related party transactions or contingent liabilities that may exacerbate financial stress.