Company Number: 15052292

Analysis Date: 2025-07-29 19:13 UTC

1. Risk Rating: MEDIUM
   The company is very newly incorporated (just over one year) with limited financial history. The balance sheet shows a small net asset base (£2,257) and net current liabilities (-£1,307), indicating tight liquidity. While there is positive retained earnings, the working capital pressure and minimal capital raise pose moderate solvency and liquidity risks typical of a start-up in a capital-intensive trade.

2. Key Concerns:

• Negative net current assets: Current liabilities exceed current assets by £1,307, suggesting potential short-term liquidity strain.
• Small equity base and minimal share capital: Only £2 share capital and modest net assets limit the company’s financial buffer against operational shocks.
• Significant tax creditor (£8,607): The largest component of current liabilities is tax owed, which could crystallize cash outflows imminently, stressing liquidity further.

3. Positive Indicators:

• Profit generated in first year (£40,255): Despite being a new start-up, the company reported a profit before dividends, indicating initial operational viability.
• Directors experienced in related fields: The directors have relevant occupational backgrounds (electrician and operational practitioner), which should support business execution.
• No overdue filings or compliance issues: The company is current on statutory accounts and confirmation statements, indicating good governance and regulatory compliance to date.

4. Due Diligence Notes:

• Review the detailed income statement and cash flow forecast to assess sustainability of profits and liquidity management.
• Clarify the nature and timing of the tax liabilities and whether payment plans or deferrals exist.
• Investigate the business model’s scalability and dependency on the directors’ involvement given the small team size.
• Confirm the adequacy of working capital and potential need for additional funding or credit facilities.