ADB CARPENTRY LTD

Executive Summary

ADB CARPENTRY LTD shows significant financial weakening from 2023 to 2024, with net assets dropping sharply and minimal capital resources. While regulatory compliance is current and no immediate liabilities are reported, the company’s sustainability and liquidity appear fragile due to reduced financial buffers and workforce size. Further examination into operational cash flows and business viability is recommended before considering investment.

ADB CARPENTRY LTD - Analysis Report

Company Number: 13439010

Analysis Date: 2025-07-20 17:16 UTC

1. Risk Rating: HIGH
   The company’s financial position shows a significant deterioration in net current assets and net assets from £15,197 in 2023 to only £1,368 in 2024, indicating a steep decline in financial resources and potential solvency concerns. The minimal share capital (£100) and micro-entity status limit financial resilience and borrowing capacity.

2. Key Concerns:

• Rapid Asset Decline: A decrease of approximately 91% in net current assets within one year raises concerns about operational cash flow and ability to meet short-term obligations despite no current liabilities reported in 2024.
• Minimal Capital Base: Share capital of only £100 and negligible net assets suggest limited financial buffer against unexpected losses or business downturns.
• Reduced Workforce: Average employee count dropped from 2 to 1, which may reflect downsizing or operational difficulties impacting sustainability.

3. Positive Indicators:

• No Overdue Filings: The company’s accounts and confirmation statements are up to date, showing regulatory compliance and good governance in relation to statutory filings.
• No Current Liabilities: As of the latest accounts, there are no reported creditors due within one year, indicating no immediate external debt pressures.
• Active Status with Established Directors: The company is active with consistent director appointments since incorporation, suggesting management continuity.

4. Due Diligence Notes:

• Investigate reasons behind the sharp decline in net current assets and net assets, including reviewing cash flow statements and income statements if available.
• Confirm absence of contingent liabilities or off-balance sheet obligations that may not appear in the balance sheet.
• Assess business model viability given the reduction in staff and micro-entity scale, including client base and order book status.
• Review director backgrounds and any related party transactions for potential risks.
• Monitor future filings for signs of further financial deterioration or late submissions.