FINER FINISHES PLASTERING AND BUILDING SERVICES LTD

Executive Summary

FINER FINISHES PLASTERING AND BUILDING SERVICES LTD shows signs of moderate financial strain, notably through its negative working capital and reliance on director loans. While filings and governance appear compliant, the company’s shrinking net assets and cash reserves warrant close monitoring. Further review of profitability and cash flow is advised to confirm operational sustainability.

FINER FINISHES PLASTERING AND BUILDING SERVICES LTD - Analysis Report

Company Number: 14355971

Analysis Date: 2025-07-19 12:40 UTC

1. Risk Rating: MEDIUM

Justification: FINER FINISHES PLASTERING AND BUILDING SERVICES LTD is an active micro private limited company with relatively recent incorporation (2022). The company reports net current liabilities and a modest net asset base that has declined in the latest year. There are no overdue filings or signs of regulatory noncompliance. However, the liquidity position and reliance on director loans indicate moderate risk.

2. Key Concerns:

• Negative net current assets of £8,724 at year-end 2024 indicate potential liquidity pressure to meet short-term obligations.
• The director loan balance of £29,244, interest-free and repayable on demand but with no fixed terms, suggests dependency on related-party funding to support operations.
• Declining net assets from £3,120 in 2023 to £802 in 2024 and a reduction in cash balances from £56,318 to £31,300 may signal profitability or cash flow challenges.

3. Positive Indicators:

• The company is up to date with all Companies House filings (accounts and confirmation statement).
• Tangible fixed assets are held, and the asset base remains positive, supporting operational continuity.
• The director, Mr. Daryl Lee Joseph Barber, holds full ownership and control, which may facilitate swift decision-making and capital injections if required.
• The company employs a small number of staff (2 employees), consistent with its micro category and potentially enabling low overheads and operational flexibility.

4. Due Diligence Notes:

• Review the profit and loss accounts (not included in filings) to assess revenue trends, gross margins, and net profitability.
• Investigate the nature and terms of the director loan and whether there are plans for repayment or conversion to equity.
• Assess cash flow forecasts and working capital management to understand the sustainability of operations given the current net current liability position.
• Confirm whether any contingent liabilities or off-balance sheet obligations exist that may impact solvency.
• Evaluate customer concentration and contract terms given the building and plastering industry risks.