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.