ASSURED BUILDING SERVICES LTD
Executive Summary
ASSURED BUILDING SERVICES LTD is a newly incorporated micro-entity demonstrating early profitability and strong liquidity with no overdue filings, indicating low immediate risk. However, the existence of a significant provisions liability and reliance on a single director warrant further investigation. Overall, the company appears operationally stable with positive regulatory compliance and market presence at this stage.
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This analysis is opinion only and should not be interpreted as financial advice.
ASSURED BUILDING SERVICES LTD - Analysis Report
Risk Rating: LOW
Justification: The company, ASSURED BUILDING SERVICES LTD, is newly incorporated (April 2023) and has filed timely accounts with no overdue filings. It reports a positive profit (£54,145) and healthy net current assets (£33,614) relative to modest current liabilities (£1,600), indicating good short-term liquidity. The presence of shareholder funds (£17,718) further supports financial stability at this early stage.Key Concerns:
- Provision for liabilities of £20,000 on the balance sheet reduces net assets significantly and warrants inquiry into the nature and timing of these potential obligations.
- The company has only one employee and is heavily reliant on a single director who holds 75-100% control, which may raise governance and operational continuity risks.
- As a micro-entity with minimal fixed assets (£4,104) and modest turnover (£152,310), growth prospects and scalability should be scrutinized to assess sustainability beyond the startup phase.
- Positive Indicators:
- The company generated a healthy profit margin in its first 13 months of trading, indicating effective cost control and operational efficiency.
- Strong net current assets position suggests the company can comfortably meet short-term liabilities.
- No overdue filings and compliance with Companies House deadlines reflect sound regulatory compliance and governance practices.
- The company’s website is active and promotes a positive market presence with a 5-star rating, supporting potential customer confidence and market credibility.
- Due Diligence Notes:
- Investigate the £20,000 provision for liabilities to understand the underlying risk and potential financial impact.
- Confirm the nature of contracts and client base to validate turnover sustainability and revenue consistency beyond the initial trading period.
- Review director’s broader business interests and financial background given sole control and to assess any potential conflicts or risks.
- Consider verifying the accuracy of website claims and customer reviews as part of market reputation assessment.
- Monitor cash flow trends and working capital movements in subsequent filings to confirm liquidity stability.
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