CINID CONSTRUCT LTD

Executive Summary

Cinid Construct Ltd exhibits continuing financial difficulties, including negative net assets and working capital deficits, raising serious concerns about its ability to meet obligations. Cash flow is weak and creditor exposure is high. Credit facilities are not recommended without substantial improvement or additional director funding.

CINID CONSTRUCT LTD - Analysis Report

Company Number: 13879202

Analysis Date: 2025-07-20 13:39 UTC

1. Credit Opinion: DECLINE

Cinid Construct Ltd shows significant financial weaknesses and an adverse net asset position, which undermines its ability to service debt or new credit facilities. Despite reporting a modest profit in the latest year, the company remains heavily reliant on director support to continue operations. The persistent negative net current assets and net liabilities indicate poor liquidity and working capital management. The absence of an audit and limited disclosure also restrict confidence in financial stewardship.

2. Financial Strength

The company reported net liabilities of £54,453 as of 31 March 2024, an improvement from £63,822 the prior year but still substantially negative. Current liabilities (£130,122) greatly exceed current assets (£75,669), resulting in a negative working capital of £54,453. Shareholders’ funds are negative, reflecting accumulated losses. The balance sheet shows no fixed assets disclosed, and the increase in stock from £6,287 to £65,214 suggests possible overstocking or work-in-progress tied up in contracts, further straining liquidity.

3. Cash Flow Assessment

Cash on hand has fallen sharply from £39,466 to £5,219, indicating cash flow pressures. Trade debtors increased but remain low (£5,231), limiting receivables coverage of current liabilities. The company’s high current liabilities, particularly in taxes and social security (£91,654), create imminent payment obligations that cash and liquid assets cannot cover. The negative working capital position and shrinking cash balances highlight weak short-term liquidity and potential difficulty in meeting creditor demands timely.

4. Monitoring Points

• Continued improvement or stabilization of net current assets and net liabilities.
• Cash flow trends and ability to maintain or improve cash reserves.
• Management of stock and work-in-progress to avoid tying up excessive capital.
• Timeliness and completeness of future filings, including profit and loss disclosures.
• Director support or injection of new capital to cover ongoing losses and liabilities.
• Any changes in creditor payment terms or indications of supplier pressure.

Executive Summary:

Cinid Construct Ltd is financially distressed with negative net assets and working capital deficits that impair its ability to meet liabilities without director support. Despite a small operating profit in the latest period, cash flow remains constrained and creditor balances are high. Without significant improvement in liquidity or capital injection, the company poses a high credit risk.