Company Number: 13889038

Analysis Date: 2025-07-20 19:06 UTC

1. Risk Rating: HIGH
   The company’s financial position shows net liabilities and substantial long-term loans relative to its small equity base, indicating elevated solvency risk.

2. Key Concerns:

• Negative Net Assets: The company reported net liabilities of £21,688 at the 2024 year-end, worsening from negative equity of £10,046 the prior year. This signals accumulated losses and erosion of shareholder funds.
• High Long-term Debt: Loans due after more than one year increased markedly from £100,000 to £400,000 within a year, creating potential solvency pressure and interest burden.
• Low Cash Reserves: Despite increased current assets (primarily work in progress), cash on hand declined from £19,272 to £12,002, raising liquidity concerns given current liabilities and debt obligations.

3. Positive Indicators:

• Growing Current Assets: Current assets rose significantly to £399,234 driven by work in progress, suggesting ongoing operational activity and potential revenue recognition.
• No Overdue Filings: The company is up to date with statutory accounts and confirmation statement filings, indicating regulatory compliance and governance discipline.
• Experienced Directors: The board comprises professionals including a solicitor and property developer, which may support sound management and strategic oversight.

4. Due Diligence Notes:

• Clarify the nature and terms of the £400,000 long-term loan, including interest rates, repayment schedule, and lender identity.
• Examine work in progress valuation policies and contract backlog to assess realism of current assets and revenue prospects.
• Review cash flow statements and projections to evaluate liquidity management and short-term payment capacity.
• Investigate the causes of accumulated losses and whether there is a viable plan to restore profitability and equity.
• Confirm no director disqualifications or legal issues affecting governance and operational stability.