CONSTRATTON LTD

Executive Summary

Constratton Ltd is a very young, small-scale construction development company with minimal financial resources and liquidity primarily supported by director advances. While regulatory compliance is up to date, the company’s financial position exhibits high risk due to negligible cash reserves and a very thin equity base. Further investigation into trading activity, director loans, and future revenue prospects is essential to assess viability.

CONSTRATTON LTD - Analysis Report

Company Number: 14457349

Analysis Date: 2025-07-29 12:24 UTC

1. Risk Rating: HIGH
   Justification: The company is newly incorporated with minimal assets and very low cash reserves. Current liabilities are primarily taxation and social security, which may pressure liquidity. The director has significant personal loans to the company, indicating reliance on director funding.

2. Key Concerns:

• Liquidity Risk: Cash held is only £1 against current liabilities of £121, indicating very limited immediate liquidity. Reliance on debtors (unsecured director loans) for working capital is a vulnerability.
• Solvency Risk: Net assets are just £16, a negligible buffer against liabilities. The company’s financial position is fragile and dependent on ongoing director support.
• Operational Stability: With only one employee (the director) and minimal turnover disclosed, the company’s operational scale and sustainability are uncertain. Lack of turnover detail and reliance on director advances suggest an early-stage or developing business without established income streams.

3. Positive Indicators:

• Compliance: The company is current with filings (accounts and confirmation statement) and has no overdue documents, indicating good regulatory compliance.
• Clear Control Structure: Single director and sole shareholder allows for streamlined decision-making.
• No Audit Requirement: The company qualifies for small company exemption, reducing administrative burden.

4. Due Diligence Notes:

• Investigate the nature and recoverability of the director loan classified as debtor; confirm its collectability and terms.
• Obtain turnover and profit and loss figures (not filed due to exemption) to assess actual trading performance and cash flow generation.
• Review contracts or pipeline of building project developments (SIC 41100) to gauge revenue prospects and operational scale.
• Confirm if there are any contingent liabilities or related party transactions not disclosed.
• Assess director’s capacity and intentions for further funding or business development.
• Verify whether the company’s tax and social security liabilities are manageable given current cash flows.