Company Number: 15218788

Analysis Date: 2025-07-29 15:04 UTC

1. Risk Rating: LOW

Justification: R HENDERSON CARPETS LTD is a newly incorporated micro-entity with a positive net asset position (£1,108) and modest net current assets (£483) as at 31 October 2024. The company is current with all required filings, including accounts and confirmation statements, indicating good regulatory compliance. Although the financial scale is small, the balance sheet does not indicate immediate solvency or liquidity concerns.

2. Key Concerns:

• Limited Financial History: Being incorporated in October 2023, the company only has one financial reporting period, limiting trend analysis or assessment of operational stability.
• Narrow Capital Base: The net assets and shareholders funds are minimal (£1,108), which may restrict the company’s ability to absorb losses or finance growth.
• Low Working Capital: Net current assets are positive but small (£483), so cash flow could be tight, especially given the nature of inventory and debtor cycles in the floor covering industry.

3. Positive Indicators:

• Regulatory Compliance: The company has filed accounts and confirmation statements on time, with no overdue filings or penalties.
• Solvent Position: Total assets exceed liabilities with positive net assets and shareholders funds.
• Clear Ownership and Governance: Directors and persons with significant control are clearly identified, with no negative conduct records noted.

4. Due Diligence Notes:

• Investigate the nature and terms of current liabilities to understand payment schedules and potential liquidity risks.
• Review cash flow forecasts and working capital management plans given the small buffer in net current assets.
• Understand business model and client base to assess revenue stability and growth potential beyond the first year.
• Confirm absence of related party transactions or contingent liabilities not disclosed in micro-entity accounts.