AGW PLASTERERS LIMITED

Executive Summary

AGW Plasterers Limited shows high financial risk primarily due to negative net current assets and a steep decline in net assets in its latest financial year, indicating potential liquidity and solvency challenges. While the company is compliant with statutory filings and maintains consistent leadership, the financial deterioration warrants close examination of cash flow and creditor arrangements to assess ongoing operational viability.

AGW PLASTERERS LIMITED - Analysis Report

Company Number: 13135436

Analysis Date: 2025-07-29 20:53 UTC

1. Risk Rating: HIGH

The company exhibits significant solvency and liquidity concerns, as reflected in deteriorating net current assets turning negative and a substantial decline in net assets over the latest reported period. These financial indicators suggest potential difficulty in meeting short-term obligations and maintaining operational stability.

2. Key Concerns:

• Negative Net Current Assets: For the year ended 31 March 2025, current liabilities (£32,390) exceed current assets (£24,204) by £8,186, indicating working capital deficiency and potential liquidity stress.

• Substantial Decline in Net Assets: Net assets decreased sharply from £17,263 in 2024 to £3,755 in 2025, a decline of approximately 78%, which raises concerns about sustained financial health and capital erosion.

• Secured Fixed Assets and Hire Purchase Obligations: The company has fixed assets (£11,941) partially secured under hire purchase agreements (£5,815), which may limit asset liquidity and impose additional financial commitments.

3. Positive Indicators:

• Compliance with Filing Requirements: The company is current with both accounts and confirmation statement filings, indicating regulatory compliance and management attention to governance.

• Stable Director and Business Continuity: The sole director, who is also the active operator (plasterer), has been in place since incorporation, suggesting consistent leadership and operational focus.

• Micro Entity Reporting: The company benefits from simplified reporting requirements, which may reduce administrative burden and costs.

4. Due Diligence Notes:

• Investigate the causes behind the significant deterioration in net assets and working capital from 2024 to 2025, including any unusual or one-off expenses, revenue declines, or changes in creditor terms.

• Review contract terms and obligations related to hire purchase agreements securing fixed assets to assess impact on cash flow and refinancing risks.

• Assess the company's cash flow statements and turnover trends (not provided) to better understand operational cash generation and sustainability.

• Confirm absence of director disqualifications or compliance issues beyond filings, given sole director responsibility.

• Evaluate any contingent liabilities or off-balance sheet obligations that may exacerbate solvency risks.

---