DEBEN GROUNDWORK SOLUTIONS LTD

Executive Summary

DEBEN GROUNDWORK SOLUTIONS LTD shows a stable short-term liquidity position but a concerning decline in net assets over four years, coupled with significant long-term liabilities. While compliance and governance appear adequate, the company’s minimal equity base and creditor profile warrant careful review of refinancing risks and operational cash flows. Further due diligence on creditor terms and financial performance is recommended to fully assess solvency and sustainability.

DEBEN GROUNDWORK SOLUTIONS LTD - Analysis Report

Company Number: 12476820

Analysis Date: 2025-07-20 11:35 UTC

1. Risk Rating: MEDIUM
   Justification: The company maintains positive net current assets and net assets but exhibits a significant reduction in net assets over recent years, indicating potential erosion of equity. The level of creditors due after more than one year is substantial relative to total assets, which may pressure solvency if cash flows weaken.

2. Key Concerns:

• Declining Net Assets: Net assets decreased from £12,900 in 2020 to just £2,021 in 2024, signaling deteriorating financial strength.
• Long-Term Creditors: Creditors falling due after more than one year remain high (~£11k), close to the total assets less current liabilities, presenting a solvency risk if refinancing or repayment is problematic.
• Minimal Share Capital: Share capital is nominal (£1), which may limit the company’s ability to absorb losses or raise equity capital if needed.

3. Positive Indicators:

• Positive Working Capital: Net current assets are consistently positive (£11.5k in 2024), suggesting the company can meet short-term liabilities.
• Timely Filings: No overdue accounts or confirmation statements, indicating good regulatory compliance and governance discipline.
• Stable Single Director: The sole director is continuously appointed since incorporation with no adverse records, supporting operational continuity.

4. Due Diligence Notes:

• Investigate the nature and terms of long-term creditors to assess refinancing risk and repayment schedule.
• Review cash flow statements and profitability trends to confirm operational sustainability beyond balance sheet figures.
• Clarify reasons for the significant decline in net assets and whether any impairments, dividends, or extraordinary losses occurred.
• Confirm whether the company has access to additional capital or credit facilities if needed.