Company Number: 13176876

Analysis Date: 2025-07-29 19:48 UTC

1. Risk Rating: MEDIUM
   The company exhibits modest net assets and an active operational status with no overdue filings, indicating basic compliance and operational activity. However, the presence of current liabilities exceeding current assets in the latest year signals potential liquidity stress. Limited financial history due to recent incorporation restricts a thorough trend analysis, warranting a cautious stance.

2. Key Concerns:

• Liquidity Deficit: Current liabilities (£21,675) exceed current assets (£13,691) as of 29 February 2024, leading to negative net current assets (-£7,984), which may impair the company’s ability to meet short-term obligations.
• Rapid Increase in Creditors: Creditors have increased significantly from £2,082 in 2023 to £21,675 in 2024 without a corresponding increase in current assets or turnover data, potentially indicating payment delays or cash flow constraints.
• Limited Scale and Financial Data: As a micro-entity with minimal share capital (£100) and only two employees, the company’s operational scale is small, which may limit resilience against economic or sector-specific shocks.

3. Positive Indicators:

• Positive Net Assets: Despite short-term liquidity concerns, net assets increased from £3,039 in 2023 to £7,216 in 2024, indicating growth in the company’s overall financial position.
• No Overdue Filings: Both accounts and confirmation statement filings are up to date, showing compliance with statutory requirements and good governance practices.
• Tangible Fixed Assets Investment: Investment in plant, machinery, and motor vehicles (£15,200 net book value) may support operational capacity and service delivery in roofing activities.

4. Due Diligence Notes:

• Review detailed turnover and profit & loss data (not provided) to assess revenue trends and operational profitability.
• Investigate the nature and aging of current liabilities to determine the cause of the increase and assess risk of supplier or creditor pressure.
• Confirm cash flow statements and bank balances for liquidity insights beyond the balance sheet snapshot.
• Understand the business model and contract pipeline to evaluate sustainability and growth prospects.
• Verify director backgrounds and any potential related party transactions given the small owner-operator structure.