CHARLES WEBSTER BUILDING & RENOVATION SERVICES LTD

Executive Summary

Charles Webster Building & Renovation Services Ltd is a micro-entity operating in domestic building and finishing services with improving solvency indicators in the latest financial year. Despite positive trends in net assets and working capital, historical liquidity shortfalls and limited financial disclosures suggest a moderate risk profile requiring further operational and cash flow analysis before investment. The company complies with statutory filings, supporting regulatory reliability.

CHARLES WEBSTER BUILDING & RENOVATION SERVICES LTD - Analysis Report

Company Number: 13035492

Analysis Date: 2025-07-20 13:33 UTC

1. Risk Rating: MEDIUM
   The company shows improving net current assets and net assets over the last financial year, indicating progress in solvency. However, the low absolute asset values and history of previous net current liabilities suggest moderate risk. The micro-entity status and unaudited accounts limit financial transparency, warranting caution.

2. Key Concerns:

• Historical liquidity challenges: The company reported negative net current assets in prior years (2021 and 2023), which may indicate past difficulty in meeting short-term obligations.
• Limited capital base: Share capital is only £100, reflecting a small equity buffer against losses or cash flow shocks.
• Absence of profit and loss details: The directors have not filed a profit and loss account, limiting insight into operational profitability and cash flow dynamics.

3. Positive Indicators:

• Recent improvement in working capital: Net current assets improved to £7,737 in 2024 from a deficit in previous years, suggesting better liquidity management.
• Positive net assets growth: Shareholders’ funds increased substantially from £2,845 in 2023 to £13,943 in 2024, reflecting retained earnings or capital injections.
• Compliance with filing deadlines: The company has filed accounts and confirmation statements on time, indicating regulatory compliance.

4. Due Diligence Notes:

• Investigate reasons behind prior years’ negative net current assets and whether improvements are sustainable.
• Request detailed profit and loss statements or underlying management accounts to assess operational cash flows and profitability.
• Confirm the nature and timing of any capital injections or retained earnings contributing to the increase in net assets.
• Assess the adequacy of working capital to support ongoing operations and potential expansion plans.
• Verify the background and financial capacity of directors, noting one director is retired and the other is a builder, to evaluate management stability.