CONSTRUCTII DENIS LTD

Executive Summary

CONSTRUCTII DENIS LTD demonstrates low immediate solvency and regulatory risk with a positive net asset position and up-to-date filings. However, the company’s micro scale, reliance on director funding, and lack of profit disclosure warrant further review to confirm operational viability and cash flow sufficiency. Additional financial details and business insights are recommended for a comprehensive investment risk assessment.

CONSTRUCTII DENIS LTD - Analysis Report

Company Number: 14193817

Analysis Date: 2025-07-29 14:56 UTC

1. Risk Rating: LOW
   Justification: The company is newly incorporated (2022) with stable net assets and current assets exceeding current liabilities, indicating a positive working capital position. No overdue filings or liquidation status are present. The financials show consistency year-on-year with no significant liabilities or operational losses disclosed.

2. Key Concerns:

• Limited scale and size: The company’s balance sheet and turnover suggest a micro-entity with very low cash holdings (£114) and modest receivables, potentially limiting operational flexibility.
• Reliance on director’s loan account: Creditors include a significant director’s loan (£487), which may indicate reliance on related party funding rather than external financing.
• Absence of turnover and profit disclosures: The financial statements do not include a profit and loss account, making assessment of operational profitability and cash flow generation impossible from the data provided.

3. Positive Indicators:

• Strong net current assets position: Current assets exceed current liabilities by £5,304 as of June 2024, indicating short-term solvency.
• Compliance with filing requirements: No overdue accounts or confirmation statements, reflecting good regulatory adherence.
• Small entity exemption utilization: The company correctly applies small company reporting exemptions, suggesting understanding of compliance obligations.

4. Due Diligence Notes:

• Verify revenue and profitability: Request full profit and loss statements or management accounts to assess operational sustainability and cash flow.
• Assess director loan terms and risk: Understand the nature, terms, and repayment schedule of the director’s loan account to evaluate financial dependency risks.
• Evaluate contract pipeline and client concentration: Since SIC indicates specialized construction activities, review business contracts and customer diversity to confirm revenue stability.