Company Number: SC695089

Analysis Date: 2025-07-20 15:38 UTC

1. Risk Rating: MEDIUM
   While ELDER DESIGN AND BUILD LTD shows improving net current assets and net assets from negative to positive within the latest financial year, the overall asset base and equity remain modest. The company’s micro-entity status and very limited share capital also indicate a small scale operation with limited financial cushioning.

2. Key Concerns:

• Modest Financial Scale: With net assets of only £4,117 and share capital of £1, the company operates on a very small financial scale, which may limit its ability to absorb shocks or invest in growth.
• Previous Negative Net Current Assets: The company reported negative net current assets in 2023 and 2022, indicating prior liquidity constraints that could have impacted operational stability.
• Single Employee and Director: The company relies on one director and one employee, which may pose operational risks in terms of continuity and capacity.

3. Positive Indicators:

• Improved Liquidity Position: The step from negative £1,094 net current assets in 2023 to positive £4,117 in 2024 suggests recent improvements in liquidity and short-term financial health.
• Up-to-date Filings: The company has filed accounts and confirmation statements on time with no overdue filings, reflecting good regulatory compliance.
• Stable Director and Ownership: The sole director, Mrs. Deborah Elder, has been in place since incorporation with no indication of disqualification or governance issues.

4. Due Diligence Notes:

• Confirm the company’s cash flow trends and whether the positive net current assets in 2024 are sustainable or one-off improvements.
• Review the nature of current liabilities and creditors to understand timing and risk of payment defaults.
• Assess the company’s business pipeline and contracts in the domestic construction sector to gauge operational stability and growth prospects.
• Verify the absence of contingent liabilities or off-balance sheet risks not reflected in the micro-entity accounts.
• Investigate any future capital requirements or financial support from the director or external parties.