CMP BUILDING CONSTRUCTION LTD
Executive Summary
CMP Building Construction Ltd is a newly established micro company with a stable but small financial base and positive working capital. The company’s credit profile is low risk if kept at current scale, but exposure should be limited due to its minimal assets and employee base. Ongoing monitoring of cash flow, director management, and business expansion is recommended to mitigate future credit risk.
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This analysis is opinion only and should not be interpreted as financial advice.
CMP BUILDING CONSTRUCTION LTD - Analysis Report
Credit Opinion: APPROVE with conditions. CMP Building Construction Ltd is a very young micro-entity, incorporated in 2022, with a simple balance sheet and no reported fixed assets or employees. The company shows a modest but positive net asset position and working capital, indicating minimal but stable financial footing. The director holds full control, which concentrates decision-making but also means credit risk depends heavily on his management. The absence of fixed assets and employees suggests a low operational scale, so credit exposure should be limited and closely monitored.
Financial Strength: The company’s balance sheet is small but positive, with net assets of £9,145 as of January 2024, up from £8,156 the previous year. Current assets of £9,531 primarily consist of cash or receivables, with current liabilities at only £386. No long-term liabilities or provisions exist. The company has no fixed assets, implying limited investment in tangible resources or equipment. The micro-entity status and zero employees reflect a lean operation with low financial complexity.
Cash Flow Assessment: The net current assets of £9,145 demonstrate sufficient short-term liquidity to cover immediate obligations. The low level of current liabilities relative to current assets suggests the company can meet short-term payables comfortably. However, no detailed cash flow statement is available, and the small scale means liquidity could be sensitive to delays in receivables or unforeseen expenses. Ongoing working capital management and cash flow forecasting will be critical for sustained operational continuity.
Monitoring Points:
- Watch for growth in turnover and profitability as the company expands beyond the micro scale.
- Monitor the director’s financial stewardship since control is concentrated in one individual.
- Track any acquisition of fixed assets or hiring of employees that could impact liquidity and credit risk.
- Review timely filing of accounts and confirmation statements to maintain transparency.
- Assess any increases in liabilities or overdrafts that may stress working capital.
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