Company Number: 13025649

Analysis Date: 2025-07-20 14:38 UTC

1. Risk Rating: MEDIUM
   The company shows modest net current assets and positive shareholders’ funds in the latest year after recovering from a prior deficit. However, cash balances are very low, and current liabilities have increased significantly, raising some liquidity concerns.

2. Key Concerns:

• Liquidity Position: Cash at bank is extremely low (£18) compared to current liabilities (£16,101), suggesting tight short-term liquidity despite positive net current assets. Reliance on debtors collection efficiency is critical.
• Volatility in Financial Performance: The company moved from negative net assets in 2022 to a small positive in 2023, indicating financial instability or operational challenges in prior periods.
• Limited Equity Base: With share capital of only £1 and relatively low retained earnings (£1,159), the cushion to absorb losses is minimal. This limits resilience to financial shocks.

3. Positive Indicators:

• Improved Net Assets: Shareholders’ funds improved to £1,160 in 2023 from a negative position in 2022, suggesting a recent turnaround or better profitability.
• No Overdue Filings: Both accounts and confirmation statements are filed on time, indicating regulatory compliance and sound governance practices.
• Stable Management: The same director since incorporation, with relevant industry experience (electrician), which may support operational continuity.

4. Due Diligence Notes:

• Review detailed cash flow statements if available to assess working capital management and timing of debtor collections vs creditor payments.
• Investigate reasons behind the sharp increase in current liabilities, particularly taxation and social security liabilities (£14,864 in 2023), to understand if these are cyclical or indicate payment delays.
• Confirm the nature and collectability of debtors (£16,182), especially the split between trade and other debtors, and any aged debt risks.
• Assess the sustainability of turnover growth and operational profitability trends since 2020 to confirm underlying business viability.