Company Number: 15859321

Analysis Date: 2025-07-29 20:18 UTC

1. Risk Rating: MEDIUM
   The company is newly incorporated (July 2024) and has filed its first set of micro-entity accounts on time with a modest profit. However, the presence of significant long-term liabilities relative to net assets, limited operating history, and small working capital buffer elevate risk to a medium level.

2. Key Concerns:

• Long-term creditors of £21,223 represent a substantial portion (~64%) of total net assets (£11,879), indicating leverage that could strain solvency if cash flow falters.
• Net current assets are positive but slim at £3,102, leaving limited cushion for unexpected short-term obligations or operational disruptions.
• The company has only operated for a partial first financial period (8 months), so limited financial history and unproven operational sustainability remain concerns.

3. Positive Indicators:

• The company reported a modest profit (£13,424) in the initial period, demonstrating early operational viability.
• Accounts and confirmation statements are filed on time, indicating good regulatory compliance and governance to date.
• Shareholders’ funds exceed net liabilities, reflecting positive equity and initial capital backing.

4. Due Diligence Notes:

• Review the nature and terms of the £21,223 long-term liabilities to assess repayment schedule and covenants.
• Monitor cash flow closely in the next 12 months given the narrow working capital margin.
• Investigate the experience and track record of the directors, especially their ability to manage growth and financial risks in a roofing business.
• Confirm ongoing compliance with filing deadlines and any potential contingent liabilities not disclosed.