Company Number: 14076811

Analysis Date: 2025-07-29 18:12 UTC

1. Risk Rating: MEDIUM
   The company has demonstrated a positive turnaround in net current assets and net assets in the latest financial year after two years of negative equity. However, it remains a micro-entity with very limited asset base and working capital, indicating modest financial resilience.

2. Key Concerns:

• Low Capitalisation and Asset Base: Net assets stand at only £877 as at 30 April 2024, showing a very thin equity buffer which could be easily eroded by operational losses or unexpected liabilities.
• Historical Negative Equity: The company reported negative net assets and shareholders’ funds of approximately £1,945 for the prior two years, reflecting past financial stress or losses.
• Limited Scale and Resources: With only one employee and current assets under £6,000, operational capacity and liquidity to absorb shocks appear limited.

3. Positive Indicators:

• Improved Working Capital Position: The latest accounts show net current assets of £878 compared to a deficit of £1,944 the prior year, indicating some improvement in short-term financial health.
• No Overdue Filings: Both accounts and confirmation statement are filed on time, suggesting compliance discipline and no regulatory concerns at present.
• Sole Director and PSC Clarity: Mr Tom Holt has full control and is the sole director, which can simplify decision-making and accountability.

4. Due Diligence Notes:

• Investigate the nature of the company’s civil engineering activities and client base to assess revenue stability and growth prospects.
• Review cash flow statements or bank statements to evaluate liquidity trends beyond balance sheet snapshots.
• Confirm any related party transactions or financial support arrangements given the minimal equity and working capital.
• Assess credit terms with suppliers and customers to understand cash conversion cycle and potential liquidity pressure.
• Understand the reasons behind prior years’ negative equity and how the company has addressed these issues operationally and financially.