AKJ & SONS BUILDING SERVICES LIMITED

Executive Summary

AKJ & SONS BUILDING SERVICES LIMITED shows marked financial deterioration in its latest accounts with negative net assets and working capital, raising significant solvency and liquidity concerns. Despite regulatory compliance and a stable industry classification, the company’s financial position and single-person control present elevated risks. Further investigation into the causes of financial decline and the director’s mitigation strategies is recommended before considering investment.

AKJ & SONS BUILDING SERVICES LIMITED - Analysis Report

Company Number: 13879177

Analysis Date: 2025-07-20 13:39 UTC

1. Risk Rating: HIGH
   The company exhibits a significant deterioration in net assets from £14,759 in 2024 to a net liability of £775 in 2025, indicating financial distress. The current liabilities exceed current assets by £2,655 (6,743 - 9,398 = -2,655), representing negative working capital and liquidity pressure. This raises solvency and liquidity concerns despite the small scale of operations.

2. Key Concerns:

• Negative Net Assets and Working Capital: A swing from positive net assets to a net liability within one year signals potential solvency risk and inability to cover short-term obligations.
• Shrinking Current Assets: Current assets declined substantially from £22,050 in 2024 to £6,743 in 2025, a drop of nearly 70%, reducing liquidity buffers.
• Single Director and Shareholder Control: Full ownership and control by a single director limits governance oversight and may increase risk of undetected operational or financial issues.

3. Positive Indicators:

• No Overdue Filings: Accounts and confirmation statements are up to date, indicating compliance with statutory requirements.
• Micro-Entity Status: Limited scale reduces exposure to complex regulatory burdens and large financial commitments.
• Consistent Industry: Operating in construction of domestic buildings, which can offer steady demand if managed prudently.

4. Due Diligence Notes:

• Investigate reasons for the sharp decline in current assets and increase in current liabilities between 2024 and 2025.
• Review cash flow statements and creditor payment terms to assess liquidity management and risk of insolvency.
• Examine director’s plans or measures to restore financial health, including any external financing or restructuring efforts.
• Verify if there are any contingent liabilities or off-balance sheet risks not reflected in micro-entity accounts.
• Assess the impact of sole director/shareholder control on operational decisions and risk management.