PUZZLE ARCHITECTURE LIMITED

Executive Summary

Puzzle Architecture Limited is a small, recently established architectural services company displaying modest net assets and working capital. While it maintains regulatory compliance and ownership clarity, the company’s liquidity position shows some tightening due to increased liabilities and reliance on director loans. Further assessment of operational cash flows and revenue generation is recommended to fully evaluate financial stability and sustainability.

PUZZLE ARCHITECTURE LIMITED - Analysis Report

Company Number: 13835018

Analysis Date: 2025-07-20 14:11 UTC

1. Risk Rating: MEDIUM
   Justification: Puzzle Architecture Limited is a recently incorporated small private company with modest net assets (£711) and limited working capital (£711). While it is current on filings and active, the low cash reserves and relatively high current liabilities, including a director’s loan account, suggest potential liquidity constraints and reliance on insider funding. The absence of turnover figures limits assessment of operational sustainability.

2. Key Concerns:

• Liquidity risk: Cash at bank has decreased from £10,820 (2023) to £9,441 (2024) while current liabilities increased from £6,166 to £8,830, indicating tightening working capital and potential cash flow pressure.
• Reliance on director loans: £3,891 of current liabilities is due to a director’s loan account, reflecting dependence on internal financing which may not be sustainable.
• Limited financial history and scale: Incorporated in 2022 with minimal net assets and only two employees, the company’s operational scale and financial resilience remain unproven.

3. Positive Indicators:

• Up to date statutory filings: No overdue accounts or confirmation statements, showing compliance with Companies House requirements.
• Active trading status with a clear business focus: The company operates in architectural activities backed by an active website and client-facing presence.
• Ownership and governance transparency: Single controlling shareholder with full voting rights and director appointments clearly documented, reducing complexity in decision-making.

4. Due Diligence Notes:

• Verify turnover and profitability metrics beyond balance sheet data to assess operational sustainability.
• Investigate the nature, terms, and repayment plans of the director’s loan account to understand financial dependency and risk.
• Review cash flow statements if available to identify liquidity trends and the company’s ability to meet short-term obligations.
• Confirm client base and contract pipeline to gauge revenue stability and growth prospects.
• Assess any contingent liabilities or off-balance sheet exposures not disclosed in the accounts.