CHAUDHARY SCAFFOLDING LTD

Executive Summary

CHAUDHARY SCAFFOLDING LTD is a newly incorporated micro-entity with a negative net current assets position, raising solvency and liquidity concerns. While regulatory compliance appears adequate, limited operational data and sole director control suggest elevated risk. Further investigation into liabilities and business viability is recommended before investment.

CHAUDHARY SCAFFOLDING LTD - Analysis Report

Company Number: 14828132

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

1. Risk Rating: HIGH
   Justification: The company shows a negative net current assets position of £306, indicating current liabilities exceed current assets, which raises solvency concerns. Additionally, the company is newly incorporated with minimal financial history and no employees, limiting operational stability evidence.

2. Key Concerns:

• Negative net current assets (-£306), suggesting potential liquidity issues in meeting short-term obligations.
• Absence of employees and limited operational data since incorporation in April 2023, indicating an early-stage business with unclear revenue or cash flow generation.
• Sole director and 100% shareholder concentration may pose governance risks without independent oversight or board diversity.

3. Positive Indicators:

• The company is compliant with filing deadlines for both accounts and confirmation statements, indicating regulatory adherence.
• Micro-entity status reduces complexity and filing burden, appropriate for a start-up phase company.
• Director’s responsibilities are acknowledged and accounts prepared per statutory requirements, reflecting basic governance awareness.

4. Due Diligence Notes:

• Investigate the nature and timing of liabilities contributing to the negative working capital, and assess if these are short-term or can be renegotiated.
• Understand the company’s business plan and revenue model to evaluate prospects for cash inflows and operational sustainability.
• Verify if additional capital injections or credit facilities are planned or in place to support liquidity.
• Confirm the director’s background and capacity to manage the business effectively, given sole control.