C & C CONTRACTORS (SW) LIMITED

Executive Summary

C & C CONTRACTORS (SW) LIMITED demonstrates a solid financial foundation for a newly established micro business, with positive working capital and net assets signaling initial financial health. The company should focus on preserving liquidity, managing liabilities, and planning growth prudently to ensure sustained wellness. Continued compliance and strategic financial management will be key to navigating the challenges typical for early-stage construction firms.

C & C CONTRACTORS (SW) LIMITED - Analysis Report

Company Number: 14736787

Analysis Date: 2025-07-29 13:24 UTC

Financial Health Assessment of C & C CONTRACTORS (SW) LIMITED

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1. Financial Health Score: B

Explanation:
For a newly incorporated micro-entity less than two years old, C & C CONTRACTORS (SW) LIMITED shows a fundamentally sound financial position with positive net assets and working capital. The company exhibits stable early-stage financial "vital signs" with no overdue filings, indicating good compliance and administrative health. The "B" grade reflects a generally healthy status but with some caution due to limited operating history and modest absolute figures typical of a micro company.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	14,220	Modest investment in long-term assets, indicating some operational base.
Current Assets	28,500	Adequate short-term resources, likely including cash and receivables.
Current Liabilities	24,689	Short-term obligations, manageable but should be monitored.
Net Current Assets (Working Capital)	3,811	Positive working capital shows ability to cover short-term debts — a healthy "cash flow pulse."
Total Net Assets	18,031	Indicates positive equity; company has more assets than liabilities.
Number of Employees	1	Very small scale; owner likely responsible for operations.

Additional Notes:

• No audit required as per micro-entity status, aligned with size and turnover thresholds.
• Director Rhys Evans holds full control, simplifying governance but concentrating risk.
• Industry classification (SIC 43290 - Other construction installation) suggests capital and labor-intensive business, which aligns with fixed assets and current asset levels.

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3. Diagnosis

The company’s financial "symptoms" suggest a stable start typical of a micro enterprise in the construction sector. The positive net current assets signify a healthy liquidity position, meaning the company currently has enough short-term resources to meet its immediate liabilities—a critical sign of financial wellness. The positive net assets and shareholder funds indicate that the company is solvent with a solid equity base relative to its size.

However, the diagnosis also recognizes the inherent risks of a new company with only one year of trading history. The small scale of fixed assets and staff points to limited operational breadth and potential vulnerability to market fluctuations or unexpected expenses.

The director's full ownership and control centralize decision-making but also mean the company’s fortunes are closely tied to one individual’s capacity and strategy.

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4. Recommendations

• Build Cash Reserves: Maintain or improve positive working capital to buffer against delays in payment or unexpected costs typical in construction projects.
• Monitor Liabilities Closely: Although current liabilities are covered, keep short-term debts under control to avoid liquidity stress.
• Plan for Growth: Consider gradual investment in fixed assets or hiring as business volume increases to expand operational capacity.
• Maintain Compliance: Continue timely filing of accounts and confirmation statements to avoid penalties and retain good standing.
• Diversify Customer Base: Reduce dependency risk by expanding client portfolio to smooth revenue streams.
• Financial Forecasting: Implement simple cash flow forecasts to anticipate needs and manage financial health proactively.
• Seek Professional Advice: As the business grows, periodic financial reviews with advisors can help identify early symptoms of distress.

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