Company Number: 14156195

Analysis Date: 2025-07-29 17:43 UTC

1. Risk Rating: LOW
   Plumbing & Pipework Services Ltd exhibits sound financial health for a micro-entity, with positive net current assets, net assets, and shareholder funds increasing significantly year-on-year. It maintains compliance with filing deadlines and has no signs of liquidation or insolvency proceedings.

2. Key Concerns:

• Small Scale and Limited Capital: The company is a micro-entity with minimal share capital (£2), which signals limited financial buffer for unforeseen shocks.
• Accruals and Deferred Income Increase: Accruals and deferred income rose markedly from £800 to £10,585 in 2024, which may impact liquidity timing and warrants further understanding of the nature of these deferred liabilities.
• Limited Employee Base: With only two average employees (including directors), operational capacity and scalability could be constrained, potentially impacting sustainability if demand fluctuates.

3. Positive Indicators:

• Improved Financial Position: Net current assets increased from £3,605 (2023) to £25,776 (2024), indicating improved liquidity. Net assets rose from £2,805 to £19,016, reflecting retained earnings or capital injection.
• Timely Compliance: No overdue filings for accounts or confirmation statements, demonstrating good governance and regulatory compliance.
• Stable Management and Control: Directors and significant controllers are consistent, with no disqualifications or governance concerns noted. The company operates actively in a defined niche (construction of utility projects for fluids), which suggests focused business activity.

4. Due Diligence Notes:

• Investigate the composition and timing impact of the increased accruals and deferred income to assess potential liquidity pressures.
• Review cash flow statements, if available, for detailed insight into operating cash generation and working capital management.
• Understand contract pipeline or client concentration to evaluate operational sustainability given the small team size.
• Confirm whether any related party transactions exist given the closely held nature and directors’ involvement.
• Verify any contingent liabilities or off-balance sheet exposures not visible in the micro-entity accounts.