ALLCONSTRUCT BADEA LTD

Executive Summary

ALLCONSTRUCT BADEA LTD is a newly formed micro-entity with limited financial history, showing a small profit but very low capitalization and assets. While the company meets current compliance requirements and has initial profitability, its modest scale and thin equity warrant cautious credit exposure. Credit approval should be conditional with close monitoring of financial growth, liquidity, and management performance to mitigate risk.

ALLCONSTRUCT BADEA LTD - Analysis Report

Company Number: 14633817

Analysis Date: 2025-07-20 14:40 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   ALLCONSTRUCT BADEA LTD is a newly incorporated micro-entity in the construction of domestic buildings sector, showing a modest first-year turnover of £39,530 with a small net profit of £2,469. The company’s financial footprint is minimal, with net assets of only £100, reflecting very limited capital and operational scale. While the business has demonstrated initial profitability and compliance with filing deadlines, its very small asset base and low turnover limit its debt servicing capacity and financial resilience. Approval for modest credit facilities could be considered, conditional on ongoing monitoring and possibly secured lending or personal guarantees given the thin equity and early stage of operations.

2. Financial Strength:
   The balance sheet reflects a micro-entity with minimal fixed assets (£100) and net assets of £100, indicating extremely limited capitalization. There are no reported current liabilities disclosed, but the total assets less current liabilities are equal to net assets, suggesting no significant short-term debts at the reporting date. Shareholders’ funds correspond to the nominal share capital, evidencing no accumulated retained earnings beyond the first year’s profit. The company’s financial strength is weak due to its infancy, small scale, and low asset base.

3. Cash Flow Assessment:
   The accounts do not provide detailed cash flow statements, but the profit of £2,469 against turnover and staff costs implies tight margins and limited liquidity buffer. With only two employees and minimal fixed assets, working capital requirements are likely low, but the absence of significant net current assets or cash reserves suggests liquidity could be constrained under stress. The company’s ability to generate positive operating cash flow is unproven beyond the initial period, raising caution for short-term cash flow management.

4. Monitoring Points:

• Turnover growth and profitability trends in subsequent periods to assess business viability and scaling capability.
• Liquidity and working capital levels to ensure ongoing ability to meet short-term obligations.
• Any increase in liabilities or capital expenditure that may affect financial flexibility.
• Director’s conduct and operational performance to confirm stable management and execution.
• Timeliness of future statutory filings and compliance to avoid regulatory risks.