Company Number: 15053711

Analysis Date: 2025-07-20 13:09 UTC

1. Risk Rating: HIGH
   Justification: The company is newly incorporated (August 2023) and has reported net current liabilities of £7,809 as of its first financial year ending August 2024. Current liabilities exceed current assets, indicating liquidity pressure. Additionally, the director's current account creditor balance of £72,537 suggests reliance on director funding, which may not be sustainable long term.

2. Key Concerns:

• Negative net working capital: Current liabilities (£92,683) exceed current assets (£84,874), which may impair the company’s ability to meet short-term obligations promptly.
• High director’s loan account credit balance (£72,537): This indicates the company owes significant funds to the director, raising concerns about operational cash flow and potential dependency on director financing.
• Early stage of operations with limited financial history: Incorporated less than one year ago and only one set of accounts filed, limiting visibility on operational stability and growth prospects.

3. Positive Indicators:

• Positive net assets (£2,983) and shareholder funds, albeit modest, indicate some retained equity in the business.
• No overdue filings or compliance issues noted; accounts and confirmation statements are up to date, suggesting good governance and regulatory compliance so far.
• Tangible fixed assets (£10,792) in commercial vehicles may support operational capacity in the construction sector.

4. Due Diligence Notes:

• Review the director’s current account transactions and repayment plans to assess sustainability of director financing.
• Obtain cash flow forecasts and management accounts to verify if liquidity pressures are short-term or structural.
• Evaluate contract pipeline and revenue projections to understand operational viability and growth potential.
• Confirm no related party transactions or contingent liabilities that could increase risk exposure.
• Investigate credit terms with suppliers and customers to assess working capital management effectiveness.