Company Number: 13103088

Analysis Date: 2025-07-20 12:34 UTC

1. Risk Rating: MEDIUM
   The company shows an improving working capital position with a significant increase in current assets relative to current liabilities in 2023, but it reports net liabilities and negative shareholders' funds, indicating solvency concerns. The overall financial profile warrants caution but does not suggest imminent failure.

2. Key Concerns:

• Net Liabilities and Negative Equity: Despite a strong increase in current assets, the company has net liabilities (£13,583) and negative shareholders' funds at year-end 2023, suggesting accumulated losses or debt exceeding assets.
• Long-term Creditors: The presence of £575,000 in creditors falling due after more than one year indicates material long-term obligations which may strain solvency if cash flows are insufficient.
• No Employees and Limited Operational Data: The company reported zero employees and minimal disclosures, which may indicate limited operational activity or reliance on external contractors, raising questions about business sustainability and revenue generation.

3. Positive Indicators:

• Strong Improvement in Net Current Assets: The net current assets improved substantially from negative/near zero in prior years to £561,417 in 2023, implying better short-term liquidity.
• Timely Filing and Compliance: The company is active and up to date on filings, with no overdue accounts or confirmation statements, showing good regulatory compliance.
• Experienced Directors with Significant Control: The two directors hold significant voting rights and share ownership, which may facilitate decisive governance and oversight.

4. Due Diligence Notes:

• Examine Composition and Terms of Long-term Creditors: Understand the nature, repayment schedule, and covenants associated with the £575,000 long-term liabilities to assess repayment risk.
• Review Cash Flow Statements and Revenue Streams: Obtain detailed cash flow information and revenue data to verify operational sustainability given no reported employees.
• Clarify Reason for Negative Equity: Investigate underlying causes for negative net assets—whether accumulated losses, asset impairments, or other factors.
• Confirm Business Model and Project Pipeline: Given SIC code 41100 (Development of building projects), confirm active projects, backlog, and contracts to assess future revenue prospects.
• Director Background Checks: Although no disqualifications are noted, confirm the reputations and track records of the directors given their central role.