Company Number: SC677237

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

1. Risk Rating: LOW
   TREEHOUSE CARPENTRY LTD exhibits a stable financial position with positive net current assets and net assets that have approximately doubled over three years. The company is compliant with filing deadlines and shows no signs of regulatory or governance issues. Its micro-entity status limits complexity but also suggests a small operational scale.

2. Key Concerns:

• Limited scale: As a micro-entity with modest current assets (~£12.8k) and low share capital (£1), the company is vulnerable to operational shocks or cash flow disruptions.
• Concentration of control: Single director and 75-100% ownership by Mr Michael Gangel could pose governance and succession risks.
• Minimal financial detail: Absence of profit and loss data or cash flow statements restricts deeper assessment of operational profitability and cash generation.

3. Positive Indicators:

• Strong liquidity position: Net current assets of £11,022 in 2023 indicate the company can comfortably cover short-term liabilities.
• Consistent growth in net assets: From £4,158 in 2020 to £11,022 in 2023, suggesting retained earnings or asset accumulation.
• Compliance: Accounts and confirmation statements are filed on time with no overdue filings or penalties noted.
• No off-balance sheet liabilities or employee issues reported.

4. Due Diligence Notes:

• Obtain detailed profit and loss accounts to confirm profitability trends and operational cash flow sufficiency.
• Review director’s report or management commentary for insight on business risks, market conditions, and future outlook.
• Verify any related party transactions or guarantees given by the director since ownership and management are concentrated.
• Confirm absence of contingent liabilities or pending litigation not disclosed in micro-entity accounts.
• Assess the business model’s scalability and resilience given the small size and sole director structure.