Company Number: 13937527

Analysis Date: 2025-07-29 20:53 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks as evidenced by persistent negative net assets and net current liabilities over its two years of operation. The financial position deteriorated further in the latest period, indicating ongoing challenges in meeting obligations.

2. Key Concerns:

• Negative Net Assets: The company’s net assets were negative £5,820 at 29 February 2024, worsening from negative £4,542 the prior year, indicating accumulated losses and an erosion of shareholders’ funds.
• Working Capital Deficit: Current liabilities exceed current assets by over £6,100, suggesting potential cash flow difficulties to cover short-term obligations.
• Limited Financial History and Scale: Incorporated in 2022, this micro-entity has a very limited operating history and scale, reducing the ability to assess sustainability and increasing business risk.

3. Positive Indicators:

• Timely Filing and Compliance: The company has no overdue filings for accounts or confirmation statements, indicating good regulatory compliance and governance discipline.
• Directors’ Consistency and Experience: Both directors are plasterers by occupation and have maintained their appointments since incorporation, suggesting operational continuity and relevant industry knowledge.
• Small Employee Base: With an average of 2 employees, the company’s low overheads may provide operational flexibility in managing costs.

4. Due Diligence Notes:

• Review the company’s cash flow statements or bank statements (not provided) to understand liquidity management and assess if the working capital deficit is causing payment delays or creditor issues.
• Investigate the nature and terms of current liabilities to determine if any are overdue, secured, or subject to covenant constraints.
• Assess the business model viability and revenue generation capacity given the negative equity position and limited assets.
• Verify if any director or related party loans exist that support the balance sheet position.
• Confirm absence of any director disqualification or regulatory sanctions beyond the Companies House data.