ASJ SCAFFOLDING LTD

Executive Summary

ASJ SCAFFOLDING LTD currently maintains solvency with positive net assets and regulatory compliance. However, the declining equity and significant rise in current liabilities warrant investor caution regarding liquidity and operational sustainability. Further review of liabilities composition and cash flow dynamics is recommended to clarify short-term financial health.

ASJ SCAFFOLDING LTD - Analysis Report

Company Number: 14227034

Analysis Date: 2025-07-20 12:33 UTC

1. Risk Rating: MEDIUM
   The company maintains positive net assets and net current assets, indicating solvency. However, a notable decline in net assets from £52,892 (2023) to £41,015 (2024) and a significant increase in current liabilities raise some liquidity concerns given the limited scale and no reported employees.

2. Key Concerns:

• Declining net assets and total assets less current liabilities over the last reported year, suggesting potential erosion of capital or operational challenges.
• Sharp increase in current liabilities from £4,421 (2023) to £18,893 (2024), which may pressure short-term liquidity and cash flow.
• The absence of employees implies the company may rely heavily on subcontractors or external contractors, which could affect operational stability and delivery capacity.

3. Positive Indicators:

• The company is up to date with filings and not overdue on accounts or confirmation statements, indicating good regulatory compliance so far.
• Reporting positive net current assets in both years shows the company can cover short-term obligations with current assets.
• No indication of liquidation, administration, or other distress status; company remains active and operational.

4. Due Diligence Notes:

• Investigate the composition and nature of current liabilities to determine if they are manageable or represent payment delays or accruals of concern.
• Review cash flow statements or management accounts (if available) to assess liquidity trends and operational cash generation.
• Understand business model specifics, including reliance on third-party labor or subcontractors and contract pipeline stability given zero employees reported.
• Confirm directors’ background and governance practices given the company’s relatively recent incorporation (2022) and shrinking equity base.