Company Number: 13748886

Analysis Date: 2025-07-29 12:58 UTC

1. Risk Rating: HIGH
   The company exhibits significant financial deterioration within one year, with current assets and cash decreasing drastically and current liabilities remaining high, indicating a strong liquidity strain and potential solvency risk.

2. Key Concerns:

• Sharp decline in cash and current assets from £107k to £15.9k within one year, suggesting liquidity issues.
• Current liabilities remain substantial (£14.8k) relative to current assets (£15.9k), resulting in a very slim net current asset position (£1.1k).
• Marked reduction in net assets from £27.4k to £3.1k, signaling erosion of equity and possibly ongoing losses impacting financial stability.

3. Positive Indicators:

• The company remains compliant with filing deadlines; no overdue accounts or confirmation statements are noted.
• Ownership and control are concentrated with a single director who appears actively involved and engaged with the company’s affairs.
• The company has tangible fixed assets, albeit modest, which provide some asset backing.

4. Due Diligence Notes:

• Investigate the causes of the steep decline in cash and current assets during the year ended 30 November 2023.
• Review the company’s profit and loss statements (not included) to understand operational performance and whether losses are driving equity erosion.
• Assess the sustainability of the company’s working capital given the current creditor exposure and cash flow trends.
• Confirm the director’s related party transactions and the status of the director’s loan balance to ensure no undue financial strain or misstatements.
• Examine the company’s order book, contracts, and future revenue streams given the industry context (construction of domestic buildings) to appraise operational viability.