Company Number: 14294482

Analysis Date: 2025-07-29 13:22 UTC

1. Risk Rating: HIGH
   The company shows persistent and increasing net current liabilities and negative shareholders' funds over the last three years, indicating solvency concerns. The current liabilities greatly exceed current assets, and cash reserves have dramatically declined, signaling liquidity stress.

2. Key Concerns:

• Severe Working Capital Deficit: Current liabilities (£9,576) substantially exceed current assets (£177) as of 31 March 2024, resulting in net current liabilities of £9,399. This gap has widened since prior years, raising risk over the company’s ability to meet short-term obligations.
• Negative Net Assets and Shareholders’ Funds: Net assets are negative (£4,407), with shareholders’ funds at a deficit of £4,408. This erosion of equity is a critical solvency red flag.
• Declining Cash Position: Cash on hand plunged to £30 from £2,549 the previous year, highlighting potential cash flow difficulties and operational funding stress.

3. Positive Indicators:

• Tangible Fixed Asset Base: The company holds tangible fixed assets with a net book value of £4,992 as of 2024, which may provide some collateral or operational capacity.
• No Overdue Filings: Both accounts and confirmation statement filings are up to date, indicating compliance with statutory obligations and governance discipline.
• Active Status: The company remains active with no indication of liquidation or administration proceedings to date.

4. Due Diligence Notes:

• Investigate the nature and terms of current liabilities to understand urgency and whether refinancing or restructuring options exist.
• Review the company’s business model and revenue generation potential given the industry classification (specialised design and other construction installation) and recent financial trends.
• Assess the director’s plans and financial forecasts to address the working capital deficit and restore solvency.
• Confirm whether there are any contingent liabilities or off-balance sheet risks not reflected in the accounts.
• Explore related party transactions or shareholder support that might mitigate financial distress.