DEMIR PIPE FITTING LTD

Executive Summary

Demir Pipe Fitting Ltd is a micro-entity exhibiting low financial scale but consistent compliance and positive net assets, indicating low immediate solvency risk. However, limited financial detail and absence of employees warrant further investigation into liquidity and operational sustainability before investment. Overall, the company presents a low-risk profile from the available data but requires supplementary information for a comprehensive risk assessment.

DEMIR PIPE FITTING LTD - Analysis Report

Company Number: 12966475

Analysis Date: 2025-07-20 17:36 UTC

1. Risk Rating: LOW
   The company demonstrates a stable, albeit minimal, net asset position with positive net current assets over the past five years. It is compliant with filing requirements and shows no signs of insolvency or overdue obligations.

2. Key Concerns:

• Very limited asset base and working capital (net current assets around £200-£330), indicating minimal financial buffer against unexpected liabilities or operational downturns.
• No employees reported, which may raise questions about operational capacity or reliance on subcontractors or external resources.
• Micro-entity reporting with filleted accounts limits insight into detailed profitability, cash flow, or contingent liabilities, restricting thorough financial assessment.

3. Positive Indicators:

• Consistent filing of accounts and confirmation statements on time, indicating good regulatory compliance and governance discipline.
• Positive and slightly improving net current assets and net assets over five years, demonstrating modest growth in financial stability.
• Single controlling director with full ownership and voting rights provides clear accountability and straightforward governance structure.

4. Due Diligence Notes:

• Investigate cash flow adequacy and source of working capital to confirm liquidity beyond balance sheet snapshots.
• Clarify business model and operational setup, specifically the absence of employees and implications for service delivery and sustainability.
• Seek more detailed financial information or management accounts if available to assess profitability and operational risks not evident in micro-entity filleted accounts.
• Verify director’s background and business experience given sole control and responsibility, to assess management quality and risk.