Company Number: 14194508

Analysis Date: 2025-07-20 15:37 UTC

1. Risk Rating: HIGH

Justification: The company shows persistent net current liabilities and net asset deficits over multiple years, indicating ongoing solvency and liquidity challenges. The negative shareholders' funds and working capital deficits highlight financial stress that may impair the company’s ability to meet short-term obligations.

2. Key Concerns:

• Negative Net Current Assets: The company’s current liabilities exceed current assets by £940 as of June 2024, worsening from £700 the previous year, signaling liquidity constraints.
• Negative Shareholders’ Funds: Equity is negative (£-940 in 2024), indicating accumulated losses and potential insolvency risk.
• Reliance on Group Undertakings: A significant portion (£460) of current liabilities is owed to group companies, which may pose risks if intra-group support weakens.

3. Positive Indicators:

• Compliance: No overdue filings or accounts; the company remains active and in good standing with Companies House.
• Consistent Small Workforce: Employment level stable at one employee, suggesting controlled operational scale.
• Clear Accounting Policies: Accounts prepared under FRS 102 with appropriate small company exemptions, indicating adherence to reporting standards.

4. Due Diligence Notes:

• Investigate the nature and terms of intra-group liabilities to understand dependency and repayment plans.
• Review cash flow forecasts and management plans to address persistent working capital deficits.
• Examine the company’s contract pipeline and revenue recognition policies given the construction industry’s project-based nature.
• Assess director and shareholder support and any plans for capital injection or restructuring.
• Verify absence of contingent liabilities or potential regulatory issues not disclosed in the filleted accounts.