Company Number: 13831159

Analysis Date: 2025-07-29 14:43 UTC

1. Risk Rating: MEDIUM
   Justification: The company is relatively new (incorporated 2022) and classified as a micro entity. While it shows modest turnover growth, the most recent year ended with a small loss and sharply reduced current assets and net assets, indicating potential liquidity pressure. However, no overdue filings or insolvency proceedings are evident, and the director holds full control, which may aid swift decision-making.

2. Key Concerns:

• Declining net assets from £16,558 (2022) to £4,361 (2025) alongside a loss of £1,087 in the latest year, raising solvency and sustainability questions.
• Significant drop in current assets from £33,965 (2022) to £1,132 (2025), suggesting potential liquidity constraints and tight working capital.
• Sharp increase in staff costs to £218,637 in 2025 from £8,384 in 2024, which may indicate operational scaling challenges or cost control issues.

3. Positive Indicators:

• Consistent turnover growth from £190,548 (2023/24) to £224,452 (2025), demonstrating some revenue momentum in a specialized construction niche.
• Clean compliance record with no overdue accounts or confirmation statements, reflecting good governance and regulatory adherence.
• Sole director with 75-100% control, potentially enabling agile management and quick strategic decisions.

4. Due Diligence Notes:

• Review detailed breakdown and justification of the large increase in staff costs in 2025 and its impact on profitability and cash flow.
• Investigate the nature of current assets and why there has been a steep decline, to understand liquidity risks.
• Assess the company’s cash flow forecasts and working capital management plans given the reduced net current assets.
• Confirm absence of contingent liabilities or off-balance sheet exposures not disclosed in accounts.
• Evaluate market position and client contracts to determine sustainability of revenue growth and operational stability.