Company Number: 13713455

Analysis Date: 2025-07-29 17:11 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks, evidenced by consistent negative net current assets and net liabilities over recent years. The net liabilities have worsened from £-872 in 2023 to £-8,624 in 2024, indicating deteriorating financial health.

2. Key Concerns:

• Persistent negative net current assets (working capital deficit) of approximately £166k in both 2023 and 2024, suggesting ongoing liquidity problems and potential difficulties meeting short-term obligations.
• Increasing net liabilities and shareholders’ funds deficit, moving from £-872 in 2023 to £-8,624 in 2024, reflecting erosion of equity and potential insolvency concerns.
• Limited scale and resources as a micro-entity with only 2 employees on average in 2024, which may constrain operational stability and ability to absorb financial shocks.

3. Positive Indicators:

• The company remains active and compliant with filing deadlines for both accounts and confirmation statements, reducing regulatory risk.
• Fixed assets remain relatively stable, indicating some capital investment in equipment or property relevant to its plumbing services.
• Ownership and management are centralized in a single director/major shareholder, potentially allowing for agile decision-making.

4. Due Diligence Notes:

• Investigate the nature and timing of current liabilities (£307k) to assess creditor payment terms and risk of enforcement action.
• Review cash flow statements or bank statements (not provided) to confirm liquidity position and ability to fund ongoing operations.
• Understand reasons behind deteriorating net assets despite stable fixed assets and whether there are contingent liabilities or related-party transactions.
• Assess future business prospects, contracts pipeline, and the director’s plans to restore financial health given the ongoing deficits.
• Confirm no director disqualifications or regulatory compliance issues beyond publicly filed data.