COBRA CARPENTRY LIMITED

Executive Summary

Cobra Carpentry Limited is a small, owner-managed joinery installation business exhibiting strong balance sheet growth and good regulatory compliance. While current financial indicators suggest low solvency and liquidity risk, limited operational scale and lack of detailed profitability data warrant further review. Overall, the company appears stable and well-managed within its micro-entity classification but should be monitored for concentration and operational sustainability risks.

COBRA CARPENTRY LIMITED - Analysis Report

Company Number: 13062423

Analysis Date: 2025-07-20 13:42 UTC

1. Risk Rating: LOW

Justification: Cobra Carpentry Limited demonstrates a solid net asset base with consistent growth over the past four years, culminating in net assets of £77,904 as of the 2023 year-end. The company holds positive net current assets and is not overdue on filings, which suggests good compliance and operational oversight. The micro-entity status and single director structure imply a small, manageable operation with limited complexity.

2. Key Concerns:

• Limited scale and resource base: As a micro-entity with only one employee and minimal fixed assets, the company’s operational capacity and resilience to economic shocks may be constrained.
• Concentration risk: Control and ownership rest entirely with one individual, which could present governance and continuity risks in the event of unforeseen circumstances affecting the director.
• Absence of detailed profit and loss information: The lack of filed profit and loss accounts limits visibility into revenue trends, profitability, and cash flow generation capacity.

3. Positive Indicators:

• Strong improvement in net assets and working capital in 2023, indicating enhanced financial stability.
• Timely filing of annual accounts and confirmation statements, reflecting compliance with regulatory requirements.
• Positive net current assets and absence of overdue liabilities show adequate liquidity to meet short-term obligations.
• Continuity of director and shareholder control simplifies decision-making and accountability.

4. Due Diligence Notes:

• Review underlying profit and loss performance and cash flow statements to assess operational sustainability beyond balance sheet strength.
• Investigate customer base, contract stability, and pipeline to understand revenue predictability.
• Confirm absence of contingent liabilities or off-balance sheet obligations.
• Assess director’s background for any undisclosed conduct issues or conflicts.
• Examine potential impact of limited fixed assets on capacity to scale or secure financing if needed.