CJD CONTRACTS NI LIMITED

Executive Summary

CJD CONTRACTS NI LIMITED demonstrates growth in net assets and a solid asset base, supported by timely compliance with filing requirements. However, liquidity remains tight with current liabilities close to current assets, and significant related party and director balances warrant further scrutiny. Investors should focus on cash flow adequacy and debtor collectability to assess ongoing operational stability.

CJD CONTRACTS NI LIMITED - Analysis Report

Company Number: NI672136

Analysis Date: 2025-07-20 14:49 UTC

1. Risk Rating: MEDIUM
   The company shows growth in net assets and current assets over the latest financial year and is not overdue on filings, but its liquidity position remains tight with slim net current assets and significant short-term creditors. The presence of related party balances and director loans adds complexity and potential risk.

2. Key Concerns:

• Liquidity Pressure: Current liabilities (£725,855) nearly match current assets (£738,892), resulting in a very narrow net current asset position (£13,037). This tight working capital could pose cash flow challenges.
• High Short-Term Creditors: Trade creditors and other short-term payables are substantial and have increased compared to prior year, which may strain cash management.
• Related Party and Director Balances: The company has material amounts due from a related party (£150,162) and director loans owed to the company (£49,448), which may impact cash availability and require scrutiny of collectability and terms.

3. Positive Indicators:

• Growing Net Assets and Shareholders’ Funds: Net assets increased from £99,884 in 2023 to £193,023 in 2024, reflecting retained profits and business growth.
• Stable Compliance: No overdue accounts or confirmation statement filings indicate good governance and regulatory compliance.
• Asset Base Expansion: Tangible fixed assets grew significantly, suggesting investment in operational capacity and business sustainability.
• Increasing Turnover and Debtor Balances: Rising trade debtor balances imply increased sales activity and potential revenue growth.

4. Due Diligence Notes:

• Review cash flow statements and bank facilities to assess liquidity sufficiency given near break-even working capital.
• Analyze aging of trade debtors and related party receivables to evaluate collectability risk.
• Investigate terms and repayment plans concerning director loans and related party balances to understand impact on financial stability.
• Examine creditor payment terms and any potential supplier pressure due to high trade creditor balances.
• Confirm no director disqualifications or regulatory issues beyond filings as per public records.
• Consider industry cyclicality and operational risks associated with gravel and sand pit operations, including environmental or regulatory constraints.