ASM CONSTRUCTION ENG LIMITED

Executive Summary

ASM CONSTRUCTION ENG LIMITED is a newly formed, micro-sized construction company with negative equity and limited cash resources. Its financial position is weak, and it currently lacks the operational history or capital strength to support credit facilities confidently. Without significant financial support or improvement in liquidity, the company poses a high credit risk.

ASM CONSTRUCTION ENG LIMITED - Analysis Report

Company Number: 15039148

Analysis Date: 2025-07-20 18:48 UTC

1. Credit Opinion: DECLINE. ASM CONSTRUCTION ENG LIMITED is an early-stage construction business incorporated in July 2023 with only one year of financial data. The company currently shows net liabilities of £724 and negative shareholders’ funds of £824, indicating an undercapitalised position. Current liabilities exceed cash on hand, and there is a creditor balance of £3,241 due after one year. The company’s financial base is weak, and it lacks an established track record or sufficient working capital to demonstrate reliable debt servicing capacity. The director is also the sole significant controller, which concentrates risk. Approval would require substantial additional collateral or personal guarantees.

2. Financial Strength: The balance sheet reflects net liabilities (£724), with total assets less current liabilities standing at £2,517 (all cash). There are no fixed assets reported, and the company carries a long-term creditor balance of £3,241. Shareholder funds are negative, primarily due to retained losses (£824). The company is classified as a micro-entity with minimal capital and only one employee, suggesting limited operational scale. The absence of tangible assets and negative equity indicate financial fragility and limited buffer to absorb shocks.

3. Cash Flow Assessment: Cash at bank is low (£2,517), and current liabilities (£3,241) slightly exceed cash resources, resulting in a negative net working capital position when considering the creditor balance due after one year. The company’s liquidity position is tight, with insufficient short-term assets to cover obligations. Given the startup nature and the negative equity, the business is reliant on cash inflows from operations or external funding to maintain liquidity. No information on turnover or profitability is provided, so cash generation capability is unproven.

4. Monitoring Points:

• Track monthly cash flow and working capital development closely.
• Monitor timely settlement of creditors and any overdue payments.
• Review operating performance and contract progress for revenue visibility.
• Watch for any director loans or capital injections to support funding.
• Assess any changes in the balance sheet, especially net asset position.
• Check compliance with filing deadlines and any subsequent financial disclosures.