Company Number: 12991142

Analysis Date: 2025-07-20 14:47 UTC

1. Risk Rating: LOW
   The company shows strong net current assets and positive net assets with consistent growth over recent years. It has no overdue filings and maintains compliance with statutory requirements. Cash balances have increased, reflecting improved liquidity.

2. Key Concerns:

• Deferred tax provision rose notably from £32,999 to £50,489, indicating potential future tax liabilities that may impact cash flow.
• Current liabilities remain significant relative to cash on hand, warranting monitoring of short-term liquidity management despite positive net current assets.
• The company is relatively young (incorporated 2020) and micro/small in scale, which may present operational risks typical of early-stage businesses in construction.

3. Positive Indicators:

• Net assets increased from £82,283 in 2020 to £969,190 in 2024, demonstrating robust equity growth and financial stability.
• Cash reserves more than doubled from £59,383 to £137,455 between 2023 and 2024, reflecting enhanced liquidity.
• No overdue accounts or confirmation statements, indicating good governance and regulatory compliance.
• The company is part of a larger group with TEBS Holdings Limited as parent, potentially providing financial or operational support.

4. Due Diligence Notes:

• Review the nature and timing of deferred tax liabilities to assess potential cash flow impact and tax planning strategies.
• Analyze debtor composition and aging to confirm collectability of the substantial debtor balances (~£950k).
• Evaluate the company's contract pipeline and revenue recognition policies given the construction industry SIC code to confirm sustainable operational performance.
• Confirm related party transactions and financial support arrangements with parent company TEBS Holdings Limited.
• Assess director backgrounds and governance practices, noting all directors share the same registered address.