Company Number: 14330443

Analysis Date: 2025-07-20 15:31 UTC

1. Risk Rating: HIGH
   The company exhibits a significant deterioration in net current assets and net assets over the latest financial year, with net current assets moving from a positive £3,813 in 2023 to a negative £3,354 in 2024. This sharp decline signals liquidity distress and potential solvency risk, despite being a micro-entity with minimal filing requirements.

2. Key Concerns:

• Liquidity deterioration: Current assets dropped substantially from £9,450 to £793 while current liabilities remained high (£4,147), resulting in negative working capital.
• Negative net assets: The company moved from positive net assets/shareholders’ funds of £3,813 in 2023 to a negative position of £3,354 in 2024, indicating insolvency on a balance sheet basis.
• Limited operational scale: The company employs only one person and operates in a competitive architectural sector, which may limit capacity to generate revenue or manage cash flow issues effectively.

3. Positive Indicators:

• Timely compliance: The company has no overdue filings for accounts or confirmation statements, indicating good regulatory compliance and governance practices.
• Exemption from audit under micro-entity provision: This reduces administrative burden and costs, which may be beneficial for a small operation.
• Active status with clear reporting: The company remains active and has filed accounts up to date, providing transparency.

4. Due Diligence Notes:

• Investigate reasons for the sharp decline in current assets and increase in liabilities during the latest year. Determine if this is due to a one-off event or ongoing operational issues.
• Review cash flow statements if available to assess operational cash generation and short-term liquidity management.
• Assess the nature and terms of creditors to understand payment pressures and exposure to insolvency risk.
• Understand the company’s contract pipeline, client base, and revenue trends since incorporation in 2022 to evaluate business sustainability.
• Confirm if there are any contingent liabilities or off-balance-sheet obligations not reflected in these accounts.