Company Number: 13454610

Analysis Date: 2025-07-20 18:15 UTC

1. Risk Rating: MEDIUM

Justification: The company shows a decline in net current assets turning negative in the latest financial year, indicating potential short-term liquidity challenges. Shareholders’ funds have moved from positive to a small negative amount, which raises some concern about financial stability. However, the company is still active, compliant with filings, and has no indication of insolvency or regulatory issues at this stage.

2. Key Concerns:

• Negative net current assets (£-299) and negative shareholders’ funds (£-399) as of 31 March 2024, suggesting potential liquidity stress and erosion of equity.
• Large debtor balance (£9,900) that is unchanged year on year, potentially indicating collection issues or related party balances that may not be readily convertible to cash.
• Very low cash at bank (£2), which could impair the company’s ability to meet immediate liabilities or operational expenses.

3. Positive Indicators:

• The company is current on statutory filings with no overdue accounts or confirmation statements, demonstrating regulatory compliance.
• Directors have maintained consistent control and ownership since incorporation, indicating stable governance.
• Business activity is focused on property renovation, a sector with ongoing demand, and the company is classified as a small entity with limited complexity, reducing operational risk.

4. Due Diligence Notes:

• Investigate the nature and collectability of the £9,900 debtors balance to assess cash flow risks.
• Review recent trading performance and management forecasts to determine if the negative working capital position is temporary or indicative of deeper financial distress.
• Confirm whether any related party transactions exist that may impact financial reliability.
• Assess any contingent liabilities or off-balance-sheet exposures not disclosed in the filed accounts.
• Obtain further information on cash management practices given minimal cash holdings.