C P FLOORING MK LIMITED

Executive Summary

C P Flooring MK Limited currently exhibits a low risk profile supported by positive liquidity and regulatory compliance. However, the reduction in net assets and complete disposal of fixed assets warrant further investigation to understand their impact on operations and financial sustainability. The company's tax liabilities and receivables should be monitored closely to maintain operational stability.

C P FLOORING MK LIMITED - Analysis Report

Company Number: 13111496

Analysis Date: 2025-07-20 14:39 UTC

1. Risk Rating: LOW

Justification: C P Flooring MK Limited demonstrates a solid liquidity position with net current assets of £26,478 as at 31 March 2024 and positive net assets of the same amount. The company is compliant with filing deadlines, indicating good regulatory compliance. Despite modest share capital (£1), the company’s retained earnings (profit and loss reserve) reflect accumulated value, supporting solvency.

2. Key Concerns:

• Declining net assets: Net assets fell from £35,596 in 2023 to £26,478 in 2024, suggesting reduced retained earnings which merits monitoring.
• Absence of fixed assets in 2024: The disposal of motor vehicles and fixed assets reduced tangible assets to zero, which may impact operational capacity or future cash flow needs.
• Concentration of liabilities: A substantial portion of current liabilities consists of corporation tax (£21,708) and VAT (£6,401), indicating tax obligations that require timely settlement to avoid penalties.

3. Positive Indicators:

• Strong liquidity: Cash balance increased from £11,048 in 2023 to £25,514 in 2024, providing a good buffer for short-term obligations.
• Compliance: No overdue filings for accounts or confirmation statements, demonstrating good governance and regulatory adherence.
• Small employee base (2) aligns with small company status and manageable operational complexity.

4. Due Diligence Notes:

• Investigate reasons behind the disposal of all fixed assets and impact on business operations and future capital expenditure plans.
• Review the company’s profitability trends and cash flow statements to understand the decrease in net assets.
• Confirm the accuracy and timing of tax liabilities and payments, assessing potential risks related to corporation tax and VAT obligations.
• Evaluate trade debtor quality and collectability as they represent a significant portion of current assets.