COST SURE ESTIMATING LIMITED

Executive Summary

Cost Sure Estimating Limited demonstrates solvency with positive net current assets and no overdue regulatory filings. However, a material decline in net assets and rising short-term liabilities raise liquidity concerns that warrant further investigation. Overall, the company appears operationally stable but should be monitored closely for cash flow pressures.

COST SURE ESTIMATING LIMITED - Analysis Report

Company Number: 12801285

Analysis Date: 2025-07-20 15:11 UTC

1. Risk Rating: MEDIUM

Justification: Cost Sure Estimating Limited is a small private limited company with consistent positive net current assets and net assets over recent years, indicating solvency. However, a noticeable decline in net assets from £19,525 in 2023 to £11,939 in 2024, coupled with relatively modest cash balances and increasing short-term creditors, suggests some emerging liquidity pressures. The company has no overdue filings and is compliant with statutory requirements, which supports operational and regulatory stability.

2. Key Concerns:

• Declining Net Assets and Working Capital: The decrease in net current assets from £19,525 to £11,939 and net assets from £19,525 to £11,939 over the last year could indicate profitability issues or increasing liabilities.
• Increase in Creditors: Current liabilities increased from £19,191 in 2023 to £23,749 in 2024, primarily other creditors rising significantly, which may reflect deferred payments to suppliers or accrued expenses, possibly stressing cash flow.
• Limited Share Capital: The company has a very low share capital (£100), which limits its equity buffer and may constrain capital raising options.

3. Positive Indicators:

• Positive Net Current Assets: Despite the decline, the company maintains positive net current assets, indicating it can meet short-term liabilities.
• Compliance and Timely Filing: No overdue accounts or confirmation statements; filings are up to date, reflecting sound governance practices.
• Experienced Directors with Control: Both directors hold significant control and have been appointed for several years, providing continuity in management.

4. Due Diligence Notes:

• Investigate the causes of declining net assets and working capital; review profitability trends and any extraordinary expenses or write-downs.
• Assess aging of trade and other debtors to evaluate cash flow risks, especially given that trade debtors reduced significantly while other debtors increased.
• Review the nature and terms of "other creditors" which have risen sharply, to understand payment obligations and potential liquidity constraints.
• Examine any contingent liabilities or off-balance-sheet obligations not reflected in the accounts.
• Confirm the absence of director disqualifications or governance issues beyond what is publicly available.