CHELSEA CONSTRUCTION & DESIGN LTD

Executive Summary

Chelsea Construction & Design Ltd shows a low risk profile based on available micro-entity financial data, with stable net assets and current assets comfortably exceeding liabilities. The company remains compliant with statutory filing requirements and demonstrates operational growth. Further due diligence on management changes and detailed financial performance would provide additional assurance on ongoing stability.

CHELSEA CONSTRUCTION & DESIGN LTD - Analysis Report

Company Number: 13495958

Analysis Date: 2025-07-29 20:10 UTC

1. Risk Rating: LOW
   Chelsea Construction & Design Ltd demonstrates solid financial health indicators for a micro-entity with consistent growth in net assets from £62,448 in 2023 to £72,540 in 2024. The company maintains positive net current assets and no long-term liabilities, indicating a good ability to meet short-term obligations. There are no overdue filings or signs of regulatory non-compliance.

2. Key Concerns:

• Rapid director turnover within a short period (two changes in under two years) may raise questions about management stability.
• Company is classified as micro-entity, which limits the amount of publicly available detailed financial data; this constrains a full risk assessment.
• Growth in current liabilities from £12,562 to £26,330 year-on-year, although still manageable, should be monitored to ensure liquidity is maintained.

3. Positive Indicators:

• Positive and improving net assets and shareholders’ funds, reflecting retained earnings or capital injection.
• Net current assets remain strong and stable (£46,780 in 2024 vs. £47,108 in 2023), indicating adequate working capital.
• No overdue statutory filings or accounts, demonstrating compliance with Companies House requirements.
• Sole controlling shareholder with 75-100% ownership simplifies governance and accountability.
• Increase in employee count from 3 to 5 suggests business growth and operational capacity expansion.

4. Due Diligence Notes:

• Investigate reasons behind director resignations and appointments to assess potential governance or operational issues.
• Review detailed cash flow and profit & loss accounts (not publicly filed for micro-entities) to confirm profitability and liquidity trends.
• Confirm client and contract pipeline to evaluate continuity of operations and revenue sustainability.
• Assess credit terms and payment cycles with suppliers and customers given the rise in current liabilities.
• Validate that the company’s construction activities comply with relevant industry standards and regulatory requirements.