Company Number: 14811327

Analysis Date: 2025-07-29 12:56 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net asset position and net current liabilities despite a recent incorporation date, indicating immediate solvency risks. The large amount of short-term debt relative to minimal cash and receivables raises liquidity concerns, especially for a new entity with limited trading history.

2. Key Concerns:

• Negative shareholders’ funds of £15,140 with net current liabilities of the same amount suggest the company is technically insolvent at the balance sheet date.
• Current liabilities of £887,348 heavily outweigh current assets (£872,208), with cash on hand very low at £3,582, posing significant liquidity risk.
• The company is recently incorporated (April 2023) with limited operational history, which increases uncertainty regarding business sustainability and ability to generate cash flow to meet obligations.

3. Positive Indicators:

• Compliance with filing deadlines is current, indicating good regulatory adherence to statutory requirements.
• Directors are clearly identified with significant control, suggesting stable governance structure.
• The company operates in construction of domestic buildings and development of building projects, sectors that can generate tangible assets (stocks valued at £868,431), potentially supporting future operations.

4. Due Diligence Notes:

• Investigate the nature and terms of the £885,350 bank loans and overdrafts to understand repayment schedules and refinancing risk.
• Assess the quality and realizability of stock valued at £868,431, including any encumbrances or liens.
• Review the company’s business model and contracts to evaluate forecasted cash flows and operational viability.
• Confirm absence of director disqualifications or governance issues beyond publicly available information.
• Examine any related party transactions, particularly director advances which show a credit balance for one director.