Company Number: 13105391

Analysis Date: 2025-07-20 14:09 UTC

1. Risk Rating: MEDIUM
   The company demonstrates a deterioration in liquidity and net assets over the recent year, which raises moderate solvency concerns despite no overdue filings or regulatory issues. The very limited cash balance at year-end 2023 and reduction in net current assets from positive to negative indicate potential cash flow constraints.

2. Key Concerns:

• Liquidity decline: Cash reserves dropped drastically from £4,664 in 2022 to only £7 in 2023, coupled with current liabilities exceeding current assets by £1,113 in 2023. This signals potential difficulty in meeting short-term obligations.
• Shrinking net assets: Net assets declined from £14,093 in 2022 to £6,199 in 2023, reflecting diminished financial stability and possible losses or asset impairments.
• Single director and employee: The company has only one director and one employee (the same person), which may raise operational risks due to limited management capacity and succession planning.

3. Positive Indicators:

• No overdue filings: Accounts and confirmation statements are filed on time, demonstrating compliance with Companies House requirements.
• Limited liability structure: As a private limited company, shareholder exposure is limited to invested capital (£1 share capital), mitigating personal risk for the director.
• Niche industry: Operating in electrical installation (SIC 43210), a trade with steady demand, which may support business sustainability if cash flow issues are managed.

4. Due Diligence Notes:

• Investigate the causes for the sharp decline in cash and net current assets in 2023, including review of income statement, cash flow statement, and any unusual transactions or write-downs.
• Assess the company’s ability to generate positive cash flow going forward and any reliance on director funding or external credit.
• Confirm absence of director disqualifications or regulatory sanctions beyond publicly available data.
• Review client base and contract stability given sole director/operator status.
• Verify whether the company has adequate insurance, licenses, and compliance with industry regulations.