Company Number: 13578566

Analysis Date: 2025-07-29 18:47 UTC

1. Risk Rating: MEDIUM
   The company shows a slight weakening in liquidity with net current liabilities at the latest year-end and a very modest cash balance, though it maintains positive net assets and shareholders’ funds. The business is small, with limited fixed assets and modest scale, which inherently carries some operational risk, but no immediate signs of insolvency or regulatory filing issues are evident.

2. Key Concerns:

• Liquidity Position: As of 31 August 2024, current liabilities (£1,797) slightly exceed current assets (cash £1,659 only), resulting in negative net working capital (-£138). This indicates potential short-term cash flow pressure.
• Declining Net Assets: Net assets and shareholders’ funds have decreased from £2,429 in 2023 to £1,885 in 2024, suggesting erosion of equity, possibly due to operating losses or asset depreciation.
• Limited Scale and Resource Base: With only 2 employees and minimal fixed assets (£2,023), the company may have limited operational resilience and scalability, increasing vulnerability to market or operational shocks.

3. Positive Indicators:

• Compliance and Filing: Accounts and confirmation statements are filed on time and up to date, with no overdue filings or audit requirements, indicating good governance practices for a small company.
• Positive Net Assets: Despite a small decline, net assets remain positive, and shareholders’ funds exceed liabilities, providing a buffer against insolvency risk.
• Stable Directorship and Ownership: Single director and 75-100% controlling shareholder with no adverse records or disqualifications noted, which suggests consistent management oversight.

4. Due Diligence Notes:

• Review Profit and Loss Trends: The absence of detailed profit and loss data in the filings limits assessment of profitability and operational sustainability; obtaining this information is crucial to understand causes of equity reduction.
• Cash Flow Analysis: Investigate cash flow statements or bank statements to confirm liquidity trends and the company’s ability to meet short-term liabilities.
• Operational Outlook: Assess the company’s client base, contract stability, and market conditions in the painting and cleaning services sector (SIC 81299, 43341) to evaluate ongoing business viability.