Company Number: 13478031

Analysis Date: 2025-07-20 18:08 UTC

1. Risk Rating: MEDIUM

The company shows a mixed financial position with recent improvements in net current assets and net assets, but the absolute figures remain modest given the industry and company age. The presence of long-term liabilities and relatively low fixed assets could signal moderate solvency risk. The company is still in early stages and micro-sized, which generally entails higher operational risk.

2. Key Concerns:

• Long-term Liabilities: The company has significant creditors falling due after one year (£9,620 in 2024), which may pressure future cash flows and solvency if revenue or profitability does not improve.
• Volatility in Net Assets: Net assets declined substantially from £10,926 in 2021 to a negative £4,990 in 2023, before recovering to £6,142 in 2024. This volatility suggests past operational or financial challenges.
• Single Director and Shareholder Concentration: Mr. Raymond Scannell owns 75-100% of shares and holds all voting rights, concentrating control and increasing governance and continuity risk.

3. Positive Indicators:

• Improved Working Capital Position: Net current assets improved from negative in 2023 to positive £3,495 in 2024, indicating better short-term liquidity management.
• Timely Filings and Compliance: No overdue accounts or confirmation statements, reflecting good regulatory compliance and governance.
• Industry Focus: The company operates in plumbing and heating installation, a service sector with ongoing demand, which supports potential operational sustainability.

4. Due Diligence Notes:

• Review detailed cash flow statements and profit and loss accounts (not provided) to assess profitability and cash generation capacity.
• Investigate the nature and terms of the long-term creditors to evaluate repayment risk and refinancing requirements.
• Assess director conduct and governance practices given the single-person control structure.
• Confirm any contingent liabilities or off-balance-sheet obligations not reflected in micro-entity accounts.
• Evaluate client base and contract stability to understand revenue sustainability.