Company Number: 13555811

Analysis Date: 2025-07-19 12:33 UTC

1. Risk Rating: MEDIUM
   The company demonstrates positive net assets and shareholders’ funds with no overdue filings, indicating basic operational compliance and solvency. However, the absence of cash balances at the latest year-end, reliance on trade debtors for current assets, and relatively high current liabilities compared to current assets warrant caution.

2. Key Concerns:

• Liquidity Risk: The company reported zero cash at bank as of 31 August 2024, compared to £36,941 the prior year, which raises red flags about immediate liquidity and cash flow management.
• Debtor Concentration: Current assets are heavily comprised of trade debtors (£157,660), which may be subject to collection risk, potentially impairing liquidity if these receivables are delayed or disputed.
• High Current Liabilities: Although reduced from previous years, current liabilities remain significant (£83,686), including bank loans, trade creditors, corporation tax, and other creditors, which must be met in the short term.

3. Positive Indicators:

• Growing Shareholders’ Funds: Shareholders’ equity increased from £15,711 in 2021 to £83,103 in 2024, indicating retained earnings and capital injections supporting solvency.
• No Overdue Filings: Accounts and confirmation statements are up to date, demonstrating regulatory compliance and good governance in reporting.
• Stable Employment and Asset Base: The company maintains a consistent staff count (2 employees) and a modest but tangible fixed asset base with controlled depreciation, reflecting operational continuity.

4. Due Diligence Notes:

• Investigate the reasons behind the zero cash balance at the latest year-end and assess the company’s cash flow cycle, including timing of receipts and payments.
• Review the aging and collectability of trade debtors to determine exposure to bad debts or delayed payments.
• Examine the composition and terms of current liabilities, particularly other creditors (£12,800) and any contingent liabilities or bank facilities.
• Confirm whether directors’ remuneration, related party transactions, or shareholder loans exist that could affect liquidity or solvency.
• Assess any contractual or operational risks inherent in the construction of domestic buildings sector that may impact future performance.