Company Number: 12846266

Analysis Date: 2025-07-19 12:32 UTC

1. Risk Rating: MEDIUM
   While CV HOMES LTD shows positive net assets and shareholder funds increasing over recent years, the presence of significant long-term liabilities and marginal liquidity positions indicate moderate financial risk.

2. Key Concerns:

• Liquidity Deficit: The company exhibits negative net current assets in the latest year (-£227) with current liabilities exceeding current assets, suggesting potential short-term cash flow constraints.
• High Long-Term Debt: Creditors falling due after more than one year remain very high at £510,620, which is substantial relative to net assets of £12,826, indicating leverage risk.
• Minimal Share Capital and Small Size: Share capital is nominal (£2), and the company is classified as a micro-entity with only 2 employees, which may limit operational resilience and financial flexibility.

3. Positive Indicators:

• Stable Fixed Assets: Fixed assets remain consistent at £524,683 over several years, implying asset backing for liabilities.
• Increasing Net Assets: Net assets have roughly doubled from £6,477 in 2023 to £12,826 in 2024, showing improving equity position.
• Timely Filings and Compliance: Accounts and confirmation statements are up to date with no overdue filings, reflecting good governance and regulatory compliance.

4. Due Diligence Notes:

• Review the nature and terms of the £510,620 long-term creditors to assess repayment obligations and covenants.
• Examine cash flow statements (not provided) to confirm operational cash generation and ability to meet short-term liabilities.
• Investigate the business model and revenue streams given the micro-entity status and small workforce to evaluate sustainability.
• Clarify ownership and control structure due to absence of Persons with Significant Control data.
• Confirm whether any contingent liabilities or off-balance sheet risks exist given limited disclosure.