CONSTRUCTION MANAGEMENT CH LTD

Executive Summary

CONSTRUCTION MANAGEMENT CH LTD is an active micro-entity operating in domestic building construction with improving asset position but notable long-term liabilities that warrant closer scrutiny. While regulatory compliance is current and liquidity appears sufficient in the short term, the relatively low equity base and concentration of control pose moderate solvency and operational risks. Further due diligence on liabilities and cash flow generation is advisable to confirm financial stability.

CONSTRUCTION MANAGEMENT CH LTD - Analysis Report

Company Number: 13478372

Analysis Date: 2025-07-29 15:17 UTC

1. Risk Rating: MEDIUM
   Justification: The company demonstrates positive net current assets and growing net assets over recent years, indicating some financial stability. However, a large creditor balance due after more than one year (£176,735) as of 2023, compared to relatively modest net assets (£11,886), suggests potential solvency risks if these liabilities are not managed or refinanced. The micro-entity status limits the detail available, restricting full assessment.

2. Key Concerns:

• Significant long-term liabilities (£176,735) present on the balance sheet in 2023, which may pressure solvency if cash flows are insufficient to meet these obligations.
• Relatively low net assets (£11,886) despite asset growth, indicating limited equity buffer against liabilities.
• Limited employee base (2 employees) and micro-entity classification may point to operational scale constraints and limited resource flexibility.

3. Positive Indicators:

• Consistent filing of accounts and confirmation statements on time with no overdue filings, indicating good regulatory compliance.
• Growth in fixed and current assets from 2022 to 2023, suggesting investment in business resources.
• Net current assets remain positive and improved substantially in 2023 (£94,579), supporting short-term liquidity.

4. Due Diligence Notes:

• Clarify the nature and terms of long-term creditors (£176,735) to assess repayment schedules and refinancing risk.
• Review cash flow statements and profit/loss accounts (not available here) to evaluate operational cash generation capacity.
• Evaluate the business model and contracts given the small workforce to understand scalability and sustainability.
• Confirm whether there are any contingent liabilities or off-balance-sheet exposures not captured in micro-entity accounts.