STACKHOUSE DESIGN LTD

Executive Summary

Stackhouse Design Ltd is a small, privately held architectural practice with positive net assets and no regulatory compliance issues. While the company displays a sound working capital position and stable management, its financial scale is limited and it relies on director loans for funding, which warrants further scrutiny. Overall, the business appears operationally stable but should be monitored for liquidity risks related to related party financing.

STACKHOUSE DESIGN LTD - Analysis Report

Company Number: 12520344

Analysis Date: 2025-07-20 11:51 UTC

1. Risk Rating: LOW to MEDIUM
   The company shows positive net assets and net current assets for the latest financial year with no overdue filings. However, it is a micro-entity with relatively modest financial scale and some reliance on director loans, which introduces moderate risk.

2. Key Concerns:

• Director Loans: The company has a director loan balance of £6,986 repayable on demand, indicating reliance on related party funding that could affect liquidity if not repaid.
• Small Scale and Limited Capital: Share capital is only £2, and the company is micro-sized with limited fixed assets (£21), which may constrain growth and financial resilience.
• Fluctuating Working Capital: Net current assets have improved recently (£12,818 in 2024 vs £5,076 in 2023) but showed a negative position in 2021, suggesting some past liquidity challenges.

3. Positive Indicators:

• Positive Net Assets and Working Capital: The company reported net assets of £8,179 and a healthy net current asset position as of the 2024 year-end.
• Compliance and Timely Filings: No overdue accounts or confirmation statements, indicating good regulatory compliance.
• Stable Management: Both directors have been in place since incorporation, suggesting operational continuity.

4. Due Diligence Notes:

• Review terms and security of director loans to assess potential repayment risk and impact on liquidity.
• Obtain management accounts or cash flow forecasts to evaluate ongoing operational cash flow and sustainability.
• Clarify any contingent liabilities or off-balance sheet risks not evident in micro-entity accounts.
• Verify client base and contract stability given the niche architectural services sector (SIC 71111).
• Consider the limited asset base and small employee count (average 2) in assessing operational scalability.