Company Number: 12824018

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

1. Risk Rating: LOW
   ASTRO WORK CONSTRUCTION LTD demonstrates a solid financial position with increasing net current assets and net assets over the past three years. The company is solvent, meeting current liabilities comfortably with positive working capital and cash reserves. No overdue filings or liquidation status are noted, supporting low risk from a regulatory and compliance perspective.

2. Key Concerns:

• Modest scale of operations: The company has no employees and minimal share capital (£100), which may indicate limited operational capacity or dependence on directors for business activities.
• Loans from directors: The presence of director loans (£4,078 in 2024) suggests some reliance on related party funding, which warrants monitoring for potential liquidity or governance issues.
• Proposed dividends: Proposed dividends decreased from £14,682 in 2023 to £2,682 in 2024. While not necessarily negative, this may reflect changing cash flow or profit distribution strategies that should be clarified.

3. Positive Indicators:

• Strong liquidity position with cash increasing from £44,946 to £53,030 in the latest year, and current liabilities reducing substantially from £28,159 to £13,305.
• Consistent growth in net assets and shareholders’ funds from £16,787 in 2023 to £39,725 in 2024 indicates retained profits and healthy equity accumulation.
• The company’s filings are up to date with no overdue accounts or confirmation statements, demonstrating good regulatory compliance and governance.
• No employees reported, which may reflect a low-cost structure or subcontracting model typical in specialized construction activities.

4. Due Diligence Notes:

• Verify the nature and terms of director loans to assess any risks associated with related party funding and repayment schedules.
• Clarify the business model given zero employees and the SIC code indicating specialized construction activities; determine operational sustainability and revenue sources.
• Review the rationale behind the proposed dividend reduction and understand cash flow forecasts to ensure ongoing operational stability.
• Confirm absence of contingent liabilities or off-balance sheet risks given the limited disclosures in the accounts.
• Validate director reputations and check for any undisclosed regulatory or litigation issues beyond Companies House records.