Company Number: 14736396

Analysis Date: 2025-07-29 14:33 UTC

1. Risk Rating: MEDIUM
   The company is newly incorporated (March 2023) and classified as a micro-entity. Its net assets are positive but minimal (£785), with current liabilities (£4,076) exceeding current assets (£173), resulting in a negative net working capital position (-£3,903). This suggests short-term liquidity pressure, though the overall net asset position is positive due to fixed assets. The limited financial history and small scale present moderate risk.

2. Key Concerns:

• Liquidity Imbalance: Current liabilities significantly exceed current assets, indicating potential difficulties in meeting short-term obligations without additional financing or cash inflows.
• Limited Operating History: Having been incorporated less than two years ago, the company lacks a track record, making it difficult to assess operational stability and financial resilience.
• Concentration of Control: One director and sole shareholder controls 75-100% of shares and voting rights, which may limit governance transparency and risk diversification.

3. Positive Indicators:

• Compliance: The company is up to date with filing its accounts and confirmation statement, with no overdue filings or penalties noted.
• Positive Net Assets: Despite liquidity concerns, the company reports positive net assets (£785), indicating that total assets exceed total liabilities.
• Industry Activity: Operating in the building completion and finishing sector (SIC 43390), a tangible service area with potential demand in the construction supply chain.

4. Due Diligence Notes:

• Verify the composition and realizability of fixed assets (£4,688) to understand their contribution to solvency.
• Review cash flow projections and working capital management plans to address the negative net current assets situation.
• Assess the director’s background and business plan for sustainability and growth potential given the single-person control structure.
• Confirm no contingent liabilities or off-balance sheet obligations exist that may exacerbate liquidity risks.
• Monitor future filings for revenue, profit trends, and any changes in capital structure or financing.