Company Number: 13173884

Analysis Date: 2025-07-29 13:57 UTC

1. Risk Rating: HIGH
   TOWER STONE MASON LIMITED shows significant solvency concerns given its persistent negative net assets and shareholders' funds over multiple years. The company’s liabilities exceed assets substantially, indicating an inability to meet obligations from current resources.

2. Key Concerns:

• Negative Net Assets: The company’s net liabilities have increased from -£3,122 in 2021 to -£43,729 in 2025, reflecting ongoing erosion of equity and financial distress.
• Excessive Long-term Liabilities: Creditors falling due after more than one year stand at £108,861 against total fixed assets of £136,102, creating a high gearing risk that could impair solvency.
• Severe Working Capital Deficit: Net current liabilities have grown to -£69,470, indicating insufficient short-term assets (only £363 in 2025) to cover imminent debts, raising liquidity concerns.

3. Positive Indicators:

• Compliance and Filing: The company is current with accounts and confirmation statement filings, suggesting regulatory compliance and good governance practices.
• Stable Directorship: The single director has been in place since incorporation, which may imply operational continuity.
• Micro-entity Reporting: The company’s micro classification limits disclosure requirements but also indicates a small operational scale, which may reduce complexity and risk exposure relative to larger firms.

4. Due Diligence Notes:

• Examine the nature and terms of the substantial long-term liabilities to assess refinancing risks and covenant obligations.
• Investigate cash flow patterns, especially related to operating activities, to evaluate if the company generates sufficient internal cash or relies heavily on external funding.
• Review any related party transactions or guarantees given the small shareholder base and potential concentration of control.
• Confirm the business model’s viability in the SIC-classified sectors (vehicle leasing and real estate), including asset utilization and income sources.
• Assess the director’s plans for restoring net asset value or restructuring debt.