EDWARDS CIVILS AND UTILITIES LIMITED

Executive Summary

Edwards Civils and Utilities Limited shows a low financial risk profile with strong net assets and compliance adherence despite being a young company. However, the substantial increase in debtors and hire purchase liabilities warrants closer scrutiny to ensure liquidity is not compromised. Operational dependence on a small team also suggests a need for monitoring business continuity risks.

EDWARDS CIVILS AND UTILITIES LIMITED - Analysis Report

Company Number: 13265942

Analysis Date: 2025-07-20 17:39 UTC

1. Risk Rating: LOW
   Edwards Civils and Utilities Limited demonstrates solid financial health for a relatively young company, with strong net assets and positive working capital. There are no overdue filings or indications of regulatory non-compliance. The company’s modest liabilities and growing retained earnings suggest low solvency and liquidity risk at this stage.

2. Key Concerns:

• Client Concentration in Debtors: A significant increase in debtors from £12,989 (2023) to £90,785 (2024) indicates potential concentration risk or delayed customer payments, which could strain cash flow.
• Hire Purchase Liabilities: The company has considerable fixed assets under hire purchase (£36,712 net book value) with associated liabilities, which may affect liquidity if cash flow tightens.
• Limited Scale and Resources: With only 2 employees and a single director/shareholder controlling 75-100% shares, operational dependency on key individuals may pose execution risk and challenges in scaling.

3. Positive Indicators:

• Strong Net Current Assets and Net Assets: Net current assets remain robust at £76,478 with net assets increasing to £107,521, indicating good solvency and capital backing.
• No Overdue Filings or Compliance Issues: Accounts and confirmation statements are filed on time, showing good governance and regulatory compliance.
• Gradual Asset Growth: Tangible fixed assets increased with additional investments, reflecting reinvestment into productive capacity, which supports operational sustainability.

4. Due Diligence Notes:

• Analyze Debtor Composition and Ageing: Detailed review of debtor ledger to assess collectability, concentration by client, and any overdue balances that could impair liquidity.
• Evaluate Hire Purchase Terms: Review interest rates, repayment schedules, and refinancing risk related to hire purchase contracts to understand cash flow impact.
• Assess Key Person Risk: Investigate contingency plans for operational continuity given the low headcount and single controlling shareholder/director.
• Confirm Revenue and Profit Trends: Since no income statement was provided, request profit & loss statements to evaluate profitability and cash flow generation.