ENJAZ CONTRACTING COMPANY LTD

Executive Summary

Enjaz Contracting Company Ltd exhibits high insolvency risk due to negative net current assets and shareholders’ funds as of February 2025, despite maintaining regulatory compliance and operational activity. The company's micro-entity status and concentrated ownership raise additional governance and operational concerns. Further investigation into financial deterioration, governance, and contract sustainability is recommended before considering investment.

ENJAZ CONTRACTING COMPANY LTD - Analysis Report

Company Number: 13918479

Analysis Date: 2025-07-29 20:32 UTC

1. Risk Rating: HIGH
   The company shows a deteriorating financial position with negative net current assets and shareholders’ funds in the latest financial year. This raises significant concerns about its ability to meet short-term obligations and maintain solvency.

2. Key Concerns:

• Negative Net Current Assets and Shareholders’ Funds (2025): The company moved from positive net current assets and equity in 2024 to negative figures in 2025, indicating worsening liquidity and solvency risks.
• Small Scale of Operations: The company qualifies as a micro-entity, employs only 2-3 people, and has limited asset base, which may constrain operational resilience.
• Recent Director Change and Ownership Concentration: A recent director change occurred in July 2025, and there is significant ownership concentration with one PSC holding 75-100% of shares and voting rights, which may impact governance and decision-making transparency.

3. Positive Indicators:

• Compliance with Filing Obligations: The company is up to date with accounts and confirmation statement filings, showing regulatory compliance so far.
• Active Company Status: The company is active and not in liquidation or administration, suggesting ongoing operations.
• Industry Focus: Operating in construction of domestic and commercial buildings and development of building projects, sectors with consistent demand, albeit competitive.

4. Due Diligence Notes:

• Investigate Reasons for Financial Deterioration: Review management accounts, cash flow forecasts, and underlying causes for the sharp decline in net assets and current asset coverage over liabilities.
• Assess Related Party Transactions and Governance: Given ownership by Enjaz Construction & Industrial Services and a dominant PSC, examine transactions and control dynamics.
• Confirm Operational Contracts and Pipeline: Validate the sustainability of ongoing contracts and future work pipeline to assess operational stability.
• Director Background Checks: Review the professional background and conduct record of current and past directors, especially the newly appointed director.
• Evaluate Working Capital Management: Scrutinize debtor and creditor aging to understand cash flow pressures.