Company Number: 13828294

Analysis Date: 2025-07-20 15:08 UTC

1. Risk Rating: HIGH
   The company shows sustained negative net assets and shareholders’ funds with deteriorating working capital, indicating a weak financial position and a risk of insolvency.

2. Key Concerns:

• Persistent negative net assets: Net assets declined from -£761 in 2023 to -£918 in 2024, reflecting an erosion of equity and a weak capital base.
• Negative net current assets: Working capital worsened to -£511 in 2024 from -£354 the prior year, suggesting liquidity stress and potential difficulty in meeting short-term obligations.
• Operating losses: The company reported consistent operating losses (-£156 in 2024 and -£761 previously) with no income growth, raising concerns about operational sustainability.

3. Positive Indicators:

• No overdue filings: Accounts and confirmation statements are up to date, indicating compliance with regulatory requirements.
• Active company status with a single director controlling 100% shareholding, which may simplify decision-making and strategic direction.
• Business focused on engineering design activities, a specialized sector that can have growth potential if operational issues are addressed.

4. Due Diligence Notes:

• Investigate the nature of the current liabilities and creditors to understand repayment terms and any restructuring plans.
• Review cash flow forecasts and management plans to address worsening liquidity and negative working capital.
• Assess the viability of the novel house building technology development referenced in the directors’ report, including potential commercialization timelines and funding sources.
• Confirm whether any off-balance sheet liabilities or contingent risks exist despite the statement of none disclosed.
• Monitor the director’s background and capacity for financial and operational management as the single controlling stakeholder.