ADDOB.PROJECTS LTD

Executive Summary

ADDOB.PROJECTS LTD, a recently incorporated micro-entity in the specialized construction sector, shows positive net assets and current asset coverage of liabilities but carries notable long-term creditor obligations and a director loan balance. The single director/shareholder structure and limited operating history contribute to medium risk, warranting close attention to liquidity and operational sustainability. Compliance with filing deadlines is a positive sign, though further investigation into creditor terms and funding arrangements is recommended.

ADDOB.PROJECTS LTD - Analysis Report

Company Number: 15220707

Analysis Date: 2025-07-29 12:51 UTC

1. Risk Rating: MEDIUM

Justification: ADDOB.PROJECTS LTD is a newly incorporated micro-entity with modest asset and liability figures. While the reported net assets and net current assets are positive, the presence of significant long-term creditors and the director's loan balance require monitoring. The limited operating history and single director/shareholder structure introduce some operational and governance concentration risk.

2. Key Concerns:

• Long-term liabilities of £13,100 exceed short-term creditors, which may strain cash flow if repayment terms are near or if revenues do not grow.
• Director loan balance of £8,147 repayable on demand could indicate reliance on director funding, which may be unstable or lead to liquidity pressure.
• Being a single-person operation with only one employee and sole director/shareholder concentrates operational and governance risk, which may impact business continuity or oversight.

3. Positive Indicators:

• Positive net current assets of £11,584 suggest the company can meet short-term liabilities from current assets.
• Net assets and shareholder funds stand at £12,563, indicating some initial equity buffer.
• On-time filing of accounts and confirmation statements indicates compliance with statutory requirements, reducing regulatory concerns.
• Use of micro-entity reporting simplifies compliance and reflects the company’s small scale at this stage.

4. Due Diligence Notes:

• Investigate the nature and terms of the £13,100 long-term creditors to assess repayment schedules and potential impact on solvency.
• Clarify the circumstances behind the director loan of £8,147, including repayment plans and any impact on cash flow.
• Review business plan and pipeline to gauge revenue prospects and operational viability beyond the first year.
• Verify if any related party transactions exist given the sole director/shareholder structure.
• Monitor future filings for growth in turnover, changes in liabilities, and any signs of financial distress.