Company Number: 15218994

Analysis Date: 2025-07-20 14:29 UTC

1. Risk Rating: HIGH
   Justification: The company shows significant negative net current assets and net assets, indicating insolvency risk. Despite being a micro-entity, liabilities substantially exceed current assets, which is a critical red flag for solvency and liquidity.

2. Key Concerns:

• Negative net current assets of £57,291 and net assets of the same amount suggest the company cannot cover its short-term liabilities from its current assets.
• The company was incorporated recently (October 2023) with only one employee/director, limiting operational track record and financial resilience.
• The absence of income statement data or revenue figures restricts assessment of operational cash flows and profitability, raising concerns about sustainability.

3. Positive Indicators:

• The company is fully compliant with filing requirements as of the latest due dates, indicating good regulatory governance so far.
• Sole director and 100% shareholder control by Mr. Vygandas Rimkus may allow for agile decision-making.
• The company operates in the construction of domestic buildings sector (SIC 41202), a potentially stable market depending on regional demand.

4. Due Diligence Notes:

• Investigate the nature and timing of the £68,760 current liabilities—are these trade payables, loans, or accruals? Confirm if any liabilities are overdue or disputed.
• Confirm the company’s revenue generation or contracts signed since incorporation to assess operational viability.
• Assess the director’s plans to address the negative net asset position—capital injection, refinancing, or operational turnaround strategies.
• Verify whether the negative net assets reflect start-up costs, accounting treatment of liabilities, or underlying financial distress.
• Review any related party transactions or loans from the director or shareholders.