DERRY CIVILS LTD

Executive Summary

Derry Civils Ltd is a financially robust SME in the road construction sector, exhibiting strong growth in net assets and liquidity over recent years. The company maintains a solid working capital position and has sound management oversight, supporting its ability to meet credit obligations reliably. Continued monitoring of debtor collections and sector conditions is recommended to sustain creditworthiness.

DERRY CIVILS LTD - Analysis Report

Company Number: 13143069

Analysis Date: 2025-07-29 20:52 UTC

1. Credit Opinion: APPROVE
   Derry Civils Ltd demonstrates solid financial growth and strong liquidity, indicating a good capacity to service debt obligations. The company has improved net assets significantly over the last three years and maintains a healthy net current asset position. No adverse director conduct or overdue filings are present, supporting sound management quality and business resilience in the construction sector.

2. Financial Strength:
   The balance sheet shows a positive and growing equity base with net assets increasing from £493k in 2021 to £1.12M in 2024. Tangible fixed assets have increased, reflecting investment in plant and equipment necessary for construction operations. Provisions for liabilities have increased but remain manageable relative to total assets. Share capital is nominal, with most equity represented by retained earnings, indicating accumulated profitability.

3. Cash Flow Assessment:
   Current assets stand at £1.26M against current liabilities of £400k, providing a strong net working capital of £858k. Cash reserves of £286k support operational liquidity. Debtor balances have increased significantly, which should be monitored for timely collections, but overall liquidity appears sufficient to cover short-term obligations without stress.

4. Monitoring Points:

• Debtor aging and collection efficiency to ensure cash flow remains strong
• Continued profitability to sustain and grow retained earnings and net assets
• Any increase in provisions or current liabilities that could strain liquidity
• Impact of economic cycles on construction sector demand and contract execution risk