Company Number: 13435387

Analysis Date: 2025-07-29 20:02 UTC

1. Risk Rating: LOW to MEDIUM
   Chibnall Contractors Ltd demonstrates a stable financial position with positive net current assets and shareholders’ funds growth over recent years. The company is active and compliant with filing requirements, which reduces regulatory risk. However, the modest scale of operations, director advances indicating potential reliance on insider funding, and limited cash reserves relative to debt create some liquidity and operational risks to monitor.

2. Key Concerns:

• Liquidity Position: While net current assets are positive (£34,672 as of 2024), cash at bank (£34,622) is only marginally above current liabilities (£63,583), and trade creditors and other short-term payables remain significant. Cash flow management should be reviewed to ensure ongoing operational liquidity.
• Director Advances: The director’s loan account shows an outstanding balance of approximately £30k owed by the director to the company, which may indicate reliance on director funding or intercompany transactions. This could affect financial stability if the director’s position changes.
• Concentration of Control: Ownership and control rest primarily with one individual (now Mrs Nicola Shotter), which may present governance and succession risks. The recent director change should be monitored for any operational impact.

3. Positive Indicators:

• Consistent Profit Retention and Equity Growth: Shareholders’ funds increased from £28,734 in 2021 to £44,762 in 2024, indicating retained earnings and financial strengthening.
• Compliance and Timely Filings: No overdue accounts or confirmation statements, reflecting good regulatory compliance and corporate governance.
• Stable Operational Footing: The company operates in building completion and finishing with steady assets and a small but stable workforce (4 employees), suggesting operational continuity.

4. Due Diligence Notes:

• Review detailed cash flow statements and working capital cycles to assess the company’s ability to meet short-term obligations without undue strain.
• Investigate the nature and terms of director advances and any potential contingent liabilities or guarantees associated with them.
• Monitor the impact of the recent change in directors and ownership control on company strategy and governance.
• Assess debtor aging profiles and credit risk given the large debtor balances relative to turnover (not disclosed here).
• Confirm the absence of any pending litigation or regulatory inquiries given the company’s active status and sector.