Company Number: 14408791

Analysis Date: 2025-07-29 19:23 UTC

1. Risk Rating: MEDIUM
   DAR CONSTRUCTION SERVICES LTD shows early-stage financials with minimal net assets and modest current liabilities. While it is solvent on paper, the limited scale and low net assets relative to current liabilities suggest moderate risk for meeting obligations if unexpected expenses arise.

2. Key Concerns:

• Low Net Assets: At £3,429 net assets against £76,420 current liabilities, the company has a thin equity buffer, indicating vulnerability to cash flow shocks or creditor demands.
• Early Stage and Limited Financial History: Incorporated in late 2022, with only two years of financial data, the company lacks a proven track record of operational stability or profitability.
• Small Scale with Minimal Employee Base: Only 2 employees reported, which may constrain operational capacity and scalability, impacting business sustainability.

3. Positive Indicators:

• Compliance and Timely Filings: Accounts and confirmation statements are up to date with no overdue filings, demonstrating good regulatory compliance and governance practices.
• Owner Control and Stability: The sole director and majority shareholder is consistent, potentially allowing for agile decision-making and long-term strategic planning.
• Net Current Assets Positive: Despite low absolute figures, the company maintains positive net current assets, indicating it can meet short-term liabilities at present.

4. Due Diligence Notes:

• Review detailed cash flow statements and debtor aging to assess liquidity and working capital management beyond balance sheet snapshots.
• Investigate the nature of the £79,849 prepayments/accrued income to understand if these are recoverable or indicative of advance receipts.
• Evaluate contracts in place, pipeline of projects, and client concentration to assess operational sustainability and revenue stability.
• Confirm any contingent liabilities or off-balance-sheet obligations that may affect solvency.