Company Number: 14692702

Analysis Date: 2025-07-29 12:08 UTC

1. Risk Rating: MEDIUM
   The company shows some improvement in net assets year-over-year but continues to report negative net current assets, indicating ongoing liquidity risks. The small scale and recent incorporation also limit the financial track record available for confident assessment.

2. Key Concerns:

• Negative net current assets (£-1,896 in 2025), reflecting short-term liquidity pressure and potential difficulty in meeting immediate obligations.
• Significant decline in fixed assets from £42,500 in 2024 to £20,625 in 2025 may signal asset disposals or write-downs, warranting investigation.
• Limited operating history (incorporated 2023) restricts visibility on sustainable profitability and operational stability.

3. Positive Indicators:

• Shareholders’ funds improved from £3,904 in 2024 to £18,731 in 2025, suggesting some retained earnings or capital injections strengthening equity base.
• The company has filed all statutory accounts and confirmation statements on time with no overdue filings, indicating compliance discipline.
• The business operates in a niche trade (plumbing, heat and air-conditioning installation) that may offer steady demand if well-managed.

4. Due Diligence Notes:

• Review detailed profit and loss data and cash flow statements (not provided) to understand operational cash generation and expense trends.
• Investigate the reason for the reduction in fixed assets and whether it impacts business capacity or indicates financial stress.
• Assess credit terms with suppliers and customers given the negative working capital and whether this exposes the company to supplier risks or debtor defaults.
• Confirm the background and reputation of the directors and PSCs, especially given recent director resignation and concentration of control.
• Monitor upcoming filings to ensure continued compliance and absence of regulatory flags.