EML TIMBER CONSTRUCTIONS LTD

Executive Summary

EML Timber Constructions Ltd is a recently incorporated micro-entity with a healthy short-term liquidity position and no overdue regulatory filings, supporting a low risk rating at this early stage. However, limited operating history and small scale suggest caution until operational stability is proven. Continued monitoring of financial performance and governance dynamics is recommended.

EML TIMBER CONSTRUCTIONS LTD - Analysis Report

Company Number: 14464093

Analysis Date: 2025-07-20 16:27 UTC

1. Risk Rating: LOW
   EML Timber Constructions Ltd shows a solid net current asset position relative to current liabilities and no overdue filings. The company is very young (incorporated late 2022) and operates as a micro-entity with a simple balance sheet. Early financials indicate adequate working capital and shareholder funds.

2. Key Concerns:

• Limited operating history: With just over one year since incorporation, financial trends and operational resilience cannot yet be fully assessed.
• Small scale: As a micro entity with only one employee and modest assets, the company may be vulnerable to market fluctuations or unexpected expenses.
• Concentrated control: Significant control is held by two individuals with equal shareholding and voting rights, which could pose governance risks if disagreements arise.

3. Positive Indicators:

• Solid liquidity: Net current assets of £30,589 against current liabilities of £24,048 indicate the company can meet short-term obligations comfortably.
• Compliance: No overdue accounts or confirmation statements; filings are up to date reflecting good regulatory adherence.
• Clear ownership and governance: Directors and secretary are identified with no disqualifications noted, and direct involvement of controlling shareholders suggests active management.

4. Due Diligence Notes:

• Review detailed cash flow statements and profit & loss accounts to assess operational cash generation and profitability trends.
• Understand contract pipeline and client base to evaluate revenue sustainability and growth prospects.
• Confirm absence of contingent liabilities or off balance sheet exposures not disclosed in the micro-entity accounts.
• Investigate the background and financial health of the controlling shareholders for potential related party risks.