Company Number: 15664610

Analysis Date: 2025-07-19 12:04 UTC

1. Risk Rating: LOW

Justification: TM Groundwork's Ltd is a newly incorporated private limited company with its first set of unaudited accounts filed promptly and no overdue filings. The company shows modest turnover and positive profit, with net current assets and net assets indicating a solvent position. There are no indications of financial distress or governance issues at this stage.

2. Key Concerns:

• Limited operating history: Incorporated in April 2024, the company has only one financial period reported, which limits trend analysis and risk assessment.
• Minimal asset base: Fixed assets are negligible, consisting of £100 goodwill, which may indicate dependence on intangible or service-based operations with limited capital backing.
• Negative revaluation reserve: A deficit of £4,870 is recorded, which requires clarification to understand its impact on overall equity and whether it reflects impairments or accounting adjustments.

3. Positive Indicators:

• Profitability: The company generated an operating profit of £9,190 on turnover of £287,980 within its first year, demonstrating early operational viability.
• Strong liquidity position: Cash balances equal to current assets of £4,240 with net current assets positive, indicating capacity to meet short-term liabilities.
• Full control by a single director and shareholder who is actively involved, potentially enabling agile decision-making and oversight.

4. Due Diligence Notes:

• Investigate the nature and cause of the revaluation reserve deficit to assess any underlying asset impairments or accounting treatments.
• Confirm the company's business model and revenue sustainability given the absence of employees and minimal fixed assets.
• Review any related party transactions or director loans not disclosed in the accounts, as early-stage companies often rely on such arrangements.
• Monitor forthcoming filings and annual returns to ensure continued compliance and assess business progression.