Company Number: 14549294

Analysis Date: 2025-07-29 12:57 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Doma Construction Limited is a newly incorporated micro-sized private limited company in the domestic construction sector, with its first unaudited accounts filed for the period ending March 31, 2024. The company shows a positive working capital position but with a very narrow margin (£1,143 net current assets). Given its short trading history and minimal net assets, credit facilities could be extended conditionally, subject to ongoing monitoring of cash flow and debtor collections. The directors have not been disqualified and appear to have direct equity and control, which supports accountability but there is limited financial track record to fully assess resilience.

2. Financial Strength
   Balance sheet strength is minimal. Total net assets stand at only £1,143, comprising £100 share capital and £1,043 retained earnings (profit and loss account). Current assets (£122,770) are almost entirely made up of trade debtors (£113,018), with cash of just £9,752, while current liabilities total £121,627. This results in a working capital ratio just above 1 (1.01), indicating very tight liquidity with minimal buffer to absorb unexpected cash demands or payment delays. The micro-entity classification and small staff count (2 employees) limit financial complexity but also imply limited operational scale.

3. Cash Flow Assessment
   Cash at bank is low relative to current liabilities and debtors, suggesting dependency on timely collection of receivables to meet short-term obligations. The small cash balance (£9,752) and high trade debtor concentration pose liquidity risks if payments from customers are delayed or default. The company’s ability to convert these debtors into cash promptly is critical for servicing any debt and supplier payments. No audit or detailed cash flow statement is available, so actual cash generation and management practices remain uncertain.

4. Monitoring Points

• Monitor ageing and collectability of trade debtors closely to avoid liquidity shortfalls.
• Watch working capital trends, especially changes in current liabilities and cash balances.
• Track profitability and retention of earnings in subsequent accounts to build equity.
• Review director conduct and company filings for compliance and governance transparency.
• Assess impact of any market or sector downturns on revenue and debtor risk in construction.