ANDREW CURTIS CONSTRUCTION LIMITED
Company number 05369564 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Credit Assessment: Andrew Curtis Construction Limited
1. Credit Opinion: CONDITIONAL
Reasoning: The company demonstrates a strong and consistent trajectory of net asset growth over a sustained trading history of 20 years, with conservative leverage and no adverse filings. However, micro-entity accounts provide materially insufficient disclosure to fully assess trading performance, margins, and cash flow dynamics. The dramatic shift in asset composition in the latest year—from current to fixed assets—requires explanation before full comfort can be obtained. Approval is recommended subject to provision of management accounts and clarification of recent capital expenditure.
2. Financial Strength
Balance Sheet Summary (FY2025 vs FY2024):
| Metric | FY2025 | FY2024 | Change |
|---|---|---|---|
| Fixed Assets | £591,534 | £117,389 | +£474,145 |
| Current Assets | £502,381 | £831,207 | -£328,826 |
| Current Liabilities | (£282,590) | (£315,681) | -£33,091 |
| Net Current Assets | £219,791 | £515,526 | -£295,735 |
| Provisions | (£64,438) | (£29,347) | +£35,091 |
| Net Assets | £746,887 | £603,568 | +£143,319 |
Net Asset Growth Trajectory:
| Year | Net Assets | YoY Growth |
|---|---|---|
| FY2016 | £95,672 | — |
| FY2020 | £126,593 | — |
| FY2022 | £188,433 | — |
| FY2023 | £396,138 | +110% |
| FY2024 | £603,568 | +52% |
| FY2025 | £746,887 | +24% |
Assessment:
- Net worth is robust at £746,887, built entirely from retained profits (share capital is only £100). This demonstrates strong organic wealth creation over two decades.
- Leverage is conservative: total liabilities represent just 25.8% of total assets. The business carries minimal debt relative to its asset base.
- Significant capital deployment in FY2025: Fixed assets increased fivefold from £117k to £592k, while current assets declined by £328k. This strongly suggests a major investment in plant and equipment (consistent with the site preparation trade), likely funded from accumulated cash reserves rather than new borrowings (liabilities actually decreased).
- Provisions doubled from £29k to £64k—likely tax-related provisions given the profit trajectory, but this requires confirmation.
- Key concern: The shift from liquid to illiquid assets reduces balance sheet flexibility. If trading conditions deteriorate, the company cannot readily convert fixed assets to cash.
3. Cash Flow Assessment
Working Capital Position:
| Metric | FY2025 | FY2024 |
|---|---|---|
| Current Ratio | 1.78x | 2.63x |
| Net Current Assets | £219,791 | £515,526 |
Assessment:
- Liquidity has deteriorated materially. The current ratio has fallen from a very comfortable 2.63x to a still-adequate 1.78x. This is directly attributable to the conversion of current assets into fixed assets.
- Cash position unknown for FY2025: Cash was £395k in FY2023 but is not disclosed in the latest micro-entity filing. Given current assets of £502k, cash likely remains substantial but is significantly reduced from prior years.
- Working capital of £220k remains adequate for a business of this scale and provides reasonable headroom for short-term obligations.
- Single-employee operation means minimal payroll obligations, reducing the cash burn rate in adverse scenarios.
- No visible debt structures in the balance sheet—liabilities are predominantly trade creditors and tax provisions, which are non-interest-bearing.
Cash Flow Risk: The primary risk is that the heavy capital investment in FY2025 may have over-committed the business at a point in the economic cycle. If construction activity slows, the company has less liquid buffer than in prior years to absorb a downturn.
4. Monitoring Points
| Metric | Rationale | Threshold |
|---|---|---|
| Management accounts | Micro-entity filings are insufficient for ongoing credit monitoring | Request quarterly |
| Current ratio | Track whether liquidity continues to deteriorate | Alert if <1.5x |
| Fixed asset composition | Confirm nature of capital investment and expected useful life | Clarify at onboarding |
| Provisions | Understand what the £64k provision relates to (likely CT) | Confirm at onboarding |
| Contract pipeline | Site preparation is cyclical and project-dependent | Annual review |
| Director succession | Single director creates key-person risk | Note and monitor |
| Creditor days | Assess whether trade creditors are being stretched | Track in management accounts |
Additional Observations
Director & Ownership: Mr Paul Anthony Curtis holds >75% of shares and voting rights. Ms Joanne Simmons holds 25-50%. No disqualification records are noted. The company is effectively a owner-managed vehicle with concentrated control.
Filing Compliance: Accounts are up to date, filed within deadlines. No overdue filings. The company has maintained consistent filing over its 20-year history.
Sector Context: Site preparation (SIC 43120) is a sub-sector of construction that is particularly sensitive to residential and commercial development cycles. The UK construction sector has faced headwinds from interest rate increases and planning delays. However, infrastructure and site preparation can benefit from early-cycle government spending.
Information Limitations: Micro-entity accounts provide no P&L, no turnover figures, no detailed creditor analysis, and no cash flow statement. This is a significant constraint on credit analysis. The strong net asset growth implies profitable trading, but margins, revenue stability, and customer concentration cannot be assessed from filed data alone.