C S DEVELOPMENTS EAST SUSSEX LTD

Executive Summary

C S Developments East Sussex Ltd demonstrates modest financial stability with positive net current assets and shareholder equity. However, the sharp rise in short-term liabilities and minimal cash reserves present liquidity concerns that should be further scrutinized. The company maintains good regulatory compliance and operates within a defined market sector, but investors should seek additional clarity on cash flow and creditor composition before committing capital.

C S DEVELOPMENTS EAST SUSSEX LTD - Analysis Report

Company Number: 12736431

Analysis Date: 2025-07-29 18:18 UTC

1. Risk Rating: MEDIUM
   The company shows positive net current assets and shareholder funds but displays a significant increase in current liabilities relative to cash and debtors, indicating some liquidity pressure. The small equity base and low cash reserves relative to liabilities warrant caution.

2. Key Concerns:

• Liquidity strain from current liabilities (£289k) far exceeding cash on hand (£1.4k) and modest receivables (£6.3k), signaling potential cash flow challenges.
• Significant increase in creditors year-on-year, doubling from ~£147k to ~£289k, could reflect delayed payments or rising short-term obligations.
• Very low share capital (£2) and small retained earnings (£25k) limit financial buffer against adverse events or market downturns.

3. Positive Indicators:

• Net current assets remain positive (£18.6k), suggesting the company retains some short-term solvency.
• Consistent filing history with no overdue accounts or confirmation statements, indicating compliance with regulatory requirements.
• Operating within a clear niche of building project development (SIC 41100) with no apparent governance or director conduct issues.

4. Due Diligence Notes:

• Review cash flow statements to assess operating cash generation and timing of creditor payments.
• Investigate the nature of the increased current liabilities to determine if they are trade payables, short-term loans, or other obligations.
• Assess client concentration and contract backlog to gauge future revenue stability.
• Understand the reason for low cash holdings despite increased current assets and evaluate working capital management practices.
• Confirm no hidden contingent liabilities or related party transactions that could impact financial strength.