Company Number: 14289526

Analysis Date: 2025-07-29 13:44 UTC

1. Risk Rating: MEDIUM
   The company shows positive net assets and net current assets in its latest accounts, indicating solvency. However, there are liquidity concerns from low cash balances relative to current liabilities, particularly tax and social security obligations. The firm is quite young and small, which entails operational risks and limited financial history.

2. Key Concerns:

• Liquidity and cash flow risk: Cash at bank (£1,122) is very low compared to current liabilities (£26,647), with a significant portion being taxation and social security (£24,280), indicating potential short-term cash strain.
• Reliance on trade debtors: Trade debtors increased substantially from £4,664 to £28,849, suggesting potential collection risk that could impact working capital if not realised promptly.
• Director changes and concentration of control: The recent director resignation and appointment within one month, combined with a single individual (Xxxxxx Xxxxxxxxname shown to subscribers) holding 75-100% ownership and control, raises governance considerations and dependency risk on key personnel.

3. Positive Indicators:

• Positive net current assets of £3,324 and net assets of £17,244 demonstrate the company is solvent at the balance sheet date.
• The company is compliant with filing deadlines for accounts and confirmation statements, indicating good regulatory standing.
• The business has shown growth in net assets and working capital compared to the prior year, implying operational progress.
• The company operates in niche roofing and building finishing activities (SIC codes 43910 and 43390), which could offer steady demand if well managed.

4. Due Diligence Notes:

• Investigate the nature and ageing of trade debtors to assess collectability and credit risk.
• Review payment status and arrangements for taxation and social security liabilities given the high amount outstanding.
• Obtain management forecasts and cash flow projections to evaluate liquidity management and working capital requirements.
• Understand the reason for director change and assess the impact of concentrated ownership/control on decision-making and risk management.
• Verify that the trading activities are sufficient to sustain the business and cover liabilities going forward.