AL HAYAT CONSTRUCTION LTD

Executive Summary

AL HAYAT CONSTRUCTION LTD is a micro-sized construction business with modest but improving financial metrics and positive net working capital. Given its early stage and small scale, credit can be extended on a conditional basis with close monitoring of cash flow and receivables. The company’s clean governance and lack of debt support cautious optimism for creditworthiness.

AL HAYAT CONSTRUCTION LTD - Analysis Report

Company Number: 14629059

Analysis Date: 2025-07-29 16:03 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   AL HAYAT CONSTRUCTION LTD is a newly established micro-entity in the construction sector with modest but positive net assets and working capital. The company demonstrates minimal but improving financial strength since incorporation. However, due to its very small scale, limited operating history, and low absolute asset and liquidity levels, credit approval should be conditional on ongoing monitoring of cash flows and receivables collection performance. The director’s full control and absence of adverse records support reasonable governance expectations.

2. Financial Strength:
   The balance sheet shows a gradual increase in net current assets from £434 at the end of 2023 to £1,961 at the end of 2024. Total net assets mirror this trend, reflecting retained earnings and modest growth. There are no fixed assets reported, indicating the company likely relies on subcontracted labor or leases equipment. Shareholders’ funds equal net assets, signaling no external debt. This asset profile is typical for a micro entity but leaves limited buffer against financial shocks.

3. Cash Flow Assessment:
   Current assets are mainly composed of cash and debtors, with cash balances increasing from £216 to an unspecified portion of £5,713 in total current assets. Current liabilities remain low but have increased somewhat proportionally. The company maintains positive net working capital, which is crucial for meeting short-term obligations. However, the absolute values are small, so any disruption in receivables or unexpected expenses could strain liquidity.

4. Monitoring Points:

• Track accounts receivable aging and collection efficiency to ensure cash inflows remain consistent.
• Monitor growth in current liabilities to avoid liquidity mismatches.
• Watch for any significant changes in contract volume or payment terms in the construction sector that could impact cash flow.
• Review director’s ongoing involvement and company governance as sole controlling shareholder.
• Confirm timely filing of accounts and confirmation statements to avoid regulatory penalties.