DIRECT DEVELOPMENTS CONSTRUCTION LTD

Executive Summary

Direct Developments Construction Ltd is a newly incorporated small construction entity showing early-stage financial fragility with negative net working capital and minimal equity. While compliance with statutory filings is maintained, the company’s liquidity and solvency position raise concerns regarding its ability to sustain operations without additional capital or cash inflows. Further due diligence on liabilities and operational plans is recommended to clarify risk exposure.

DIRECT DEVELOPMENTS CONSTRUCTION LTD - Analysis Report

Company Number: 14671616

Analysis Date: 2025-07-29 18:12 UTC

1. Risk Rating: HIGH
   The company exhibits a very thin equity base (£130 net assets), negative working capital (-£7,700 net current assets), and limited operational history since incorporation in early 2023. These factors combined indicate elevated solvency and liquidity risk.

2. Key Concerns:

• Negative net current assets suggest potential liquidity constraints to meet short-term obligations.
• Minimal shareholder funds and net assets provide a weak capital buffer against unforeseen expenses or losses.
• Single director and sole owner structure concentrates control and may limit governance robustness.

3. Positive Indicators:

• Company is compliant with filing deadlines and has no overdue accounts or confirmation statements.
• Tangible fixed assets exist, indicating some invested capital rather than purely liabilities.
• Operating in construction of domestic buildings, a sector with ongoing demand potential.

4. Due Diligence Notes:

• Investigate the nature and terms of current liabilities (£68,258) to understand repayment obligations and creditor concentration.
• Review cash flow forecasts and working capital management plans to assess ability to cover liabilities.
• Confirm the business model viability given the sole director’s background and planned contract pipeline.
• Verify any related party transactions or loans from the sole shareholder, which are common in new small companies.