Company Number: 14252867

Analysis Date: 2025-07-20 14:11 UTC

1. Risk Rating: LOW to MEDIUM
   The company has a positive net current asset position and modest shareholders’ funds, indicating it can meet short-term obligations. However, the absolute size of these amounts is very small, and the business is relatively young with limited financial history, which warrants cautious monitoring.

2. Key Concerns:

• Low absolute cash balance (£1,254) relative to current liabilities (£5,082), which may constrain liquidity despite positive net working capital.
• High trade creditors increase significantly from prior year (£720 to £2,541), potentially indicating stretched payment terms or supplier reliance.
• Small scale of operations with only 2 employees and limited asset base, which may affect operational resilience and scalability.

3. Positive Indicators:

• Net current assets improved from £155 to £1,012 year on year, showing better short-term financial positioning.
• No overdue filings for accounts or confirmation statements, demonstrating regulatory compliance and good governance.
• Retained earnings increased substantially (£145 to £1,002), suggesting profitability or at least positive net results since inception.

4. Due Diligence Notes:

• Review the full income statement and cash flow statement (not included) to assess profitability trends and cash generation.
• Investigate the nature and aging of trade creditors and debtors to identify any potential bad debts or payment delays.
• Confirm stability of revenue streams given the niche roofing activity and limited employee base.
• Verify director background and any related party transactions given the sole director and small size.
• Assess contract pipeline and client diversification to understand future business sustainability.