ALLEN & FLYNN DEVELOPMENTS LTD

Executive Summary

Allen & Flynn Developments Ltd operates with persistent negative net current assets and minimal equity, indicating notable solvency and liquidity risks. While compliant with filing obligations and maintaining active status, the company’s lack of employees and marginal financial position warrant thorough operational and financial due diligence before investment consideration.

ALLEN & FLYNN DEVELOPMENTS LTD - Analysis Report

Company Number: 13562116

Analysis Date: 2025-07-29 17:30 UTC

1. Risk Rating: HIGH
   Allen & Flynn Developments Ltd exhibits a high risk profile primarily due to persistent negative net current assets over multiple years, marginal positive shareholders’ funds only in the latest year, and absence of operational employees, indicating potential liquidity and solvency challenges.

2. Key Concerns:

• Negative Net Current Assets: The company has shown net current liabilities ranging from approximately £18k to £42k over the last three years, reflecting an inability to cover short-term debts with current assets.
• Minimal Equity and Working Capital: Shareholders’ funds moved from a negative position (£-32.7k in 2023) to a marginally positive (£154) in 2024, which is negligible and could be due to accounting adjustments rather than substantive financial improvement.
• No Employees and Limited Operational Data: The company reports zero employees, which raises questions about its operational activity and sustainability within the construction sector. The lack of an audit and minimal fixed assets further limit insight into business operations.

3. Positive Indicators:

• Compliance with Filing Obligations: The company is current with its accounts and confirmation statement filings, indicating adherence to statutory requirements.
• Increase in Fixed Assets: Fixed assets increased from £9,600 in 2023 to £18,448 in 2024, suggesting some investment in long-term resources.
• Active Status: The company remains active and not in liquidation or administration, showing no immediate formal insolvency proceedings.

4. Due Diligence Notes:

• Investigate Sources of Funding: Clarify how the company finances its operations given ongoing net current liabilities and minimal equity. Examine any related party loans or contingent liabilities not evident in the accounts.
• Assess Operational Activity: Verify the company’s business activities and revenue generation, especially given the absence of employees and the sector’s labor-intensive nature.
• Review Director’s Background: The sole director is an accountant, which might be positive, but further background checks on any prior directorships or financial conduct would be prudent.
• Examine Cash Flow and Creditors’ Terms: Detailed cash flow analysis and creditor arrangements would help understand liquidity pressures and payment cycles.