Company Number: 15473888

Analysis Date: 2025-07-29 16:27 UTC

1. Credit Opinion: DECLINE
   Andrea Construction Ltd is a newly incorporated company (Feb 2024) with only one year of financial data, showing net liabilities of £9,334 and negative working capital of £15,670. The company has a very limited equity base (share capital £1) and a significant short-term creditor burden (£21,676). These factors indicate weak financial strength and limited ability to service debt or absorb financial shocks. The absence of turnover or profit data and negative net assets suggest the business is in a start-up phase without established cash flow. Given these risks and lack of financial resilience, credit approval is not recommended at this stage.

2. Financial Strength:
   The balance sheet reveals a fragile financial position. Fixed assets are minimal at £7,823, primarily in plant, machinery, and motor vehicles. Current assets (£6,006) mainly consist of debtors (£3,676) and cash (£2,330), which are insufficient to cover current liabilities of £21,676. The company is therefore reliant on external funding or further equity injection to meet short-term obligations. Deferred taxation liabilities (£1,487) further add to the negative net asset position. Overall, the company’s net liabilities position and negative shareholders’ funds reflect poor financial strength.

3. Cash Flow Assessment:
   Current cash holdings (£2,330) are low relative to creditors due within one year (£21,676), indicating liquidity stress. The negative net current assets (-£15,670) highlight a working capital deficit, which raises concerns about the company’s ability to pay suppliers and other short-term liabilities on time. The single director and small workforce (1 employee) suggest limited operational scale and potentially constrained cash inflows. Without evidence of robust cash generation or external support, the liquidity position is weak.

4. Monitoring Points:

• Future turnover and profit generation to assess operational viability and cash flow improvement.
• Changes in working capital, particularly reduction in short-term creditors or increase in current assets.
• Capital injections or loans to strengthen equity and liquidity buffers.
• Payment record with suppliers and tax authorities to detect any delays or defaults.
• Director’s financial conduct and any changes in management or control.