Company Number: 13611912

Analysis Date: 2025-07-20 18:06 UTC

1. Risk Rating: MEDIUM
   The company has demonstrated a material turnaround in net assets from negative (£1,277) in 2022 to a positive £138,193 in 2023, largely driven by a significant increase in fixed assets. However, the persistent negative net current assets position (-£61,229 in 2023) signals liquidity constraints. The micro-entity status and limited employee base also indicate a very small scale operation with limited financial resilience.

2. Key Concerns:

• Negative Net Current Assets: Consistent working capital deficits in both 2022 and 2023 suggest cash flow pressures and potential difficulty in meeting short-term liabilities promptly.
• Lack of Employees: The average number of employees is zero for the latest year, indicating potential operational capacity issues or reliance on subcontractors that may affect sustainability.
• Concentration of Control: Single director and 75-100% shareholder control by one individual concentrates decision-making risk and may limit governance oversight.

3. Positive Indicators:

• Improved Net Asset Position: The significant increase in fixed assets and net assets in 2023 reflects some success in asset investment or capital injection, which strengthens the balance sheet.
• Timely Filing Compliance: Both accounts and confirmation statements are up to date, indicating adherence to regulatory requirements.
• Active Trading Status: The company remains active with no indication of insolvency proceedings, suggesting ongoing business operations.

4. Due Diligence Notes:

• Investigate the nature and liquidity of fixed assets (e.g., scaffolding equipment, property) to assess their realisable value and impact on solvency.
• Clarify the operational model given the absence of employees—whether the company uses subcontractors or other arrangements that may influence cost structure and risk.
• Review cash flow statements (if available) to understand how the company manages working capital deficits and meets liabilities.
• Assess director’s background and financial commitment given sole control, to identify any governance or continuity risks.
• Confirm if any contingent liabilities or off-balance sheet obligations exist that could further impact financial stability.