Company Number: 14193002

Analysis Date: 2025-07-20 19:16 UTC

1. Risk Rating: HIGH
   The company shows negative net assets and net current liabilities as of its latest accounts, indicating solvency concerns within a short operating history. The micro-entity status and small scale suggest limited financial resilience.

2. Key Concerns:

• Solvency Risk: Net current liabilities of £12,123 and net liabilities of £14,152 as of June 2024 point to the company’s inability to cover short-term obligations with current assets.
• Liquidity Concerns: Current liabilities have appeared only in FY 2024 (£40,375), whereas none were reported in prior years, signaling emerging or worsening liquidity pressures.
• Operational Scale & Sustainability: Operating with a single employee and minimal asset base under a micro-entity regime, the business may have limited operational capacity and financial flexibility to sustain or grow.

3. Positive Indicators:

• No Filing Delinquencies: All statutory filings are up to date with no overdue accounts or confirmation statements, reflecting good compliance and governance practices.
• Stable Ownership & Control: Mr. Toni Ghani holds 75-100% ownership and voting rights, providing clear and stable control which may facilitate decisive management actions.
• Recent Incorporation: Incorporated in mid-2022, the company is in early stages of operation, so negative equity might reflect start-up phase investment and initial losses rather than entrenched financial distress.

4. Due Diligence Notes:

• Investigate the nature and timing of the current liabilities that emerged by FY 2024 to assess causes and repayment prospects.
• Review cash flow statements or internal management accounts, if available, to evaluate liquidity trends and cash burn rate.
• Understand business model viability and client pipeline given the single-employee operation and specialized construction activity classification (SIC 43999).
• Clarify director’s advances and any related party transactions that could impact financial position or liquidity.
• Monitor ongoing compliance and any contingent liabilities not disclosed in micro-entity filings.