FIRST CHOICE DRIVES AND PATIOS LTD

Executive Summary

First Choice Drives and Patios Ltd is a recently formed small private construction company with very limited tangible assets and negative working capital, indicating significant liquidity risks. While compliant with filing requirements and operating in a specialized niche, the company’s unproven operational scale and concentrated ownership necessitate further due diligence on its cash flows, goodwill valuation, and governance before investment consideration.

FIRST CHOICE DRIVES AND PATIOS LTD - Analysis Report

Company Number: 14415387

Analysis Date: 2025-07-29 16:38 UTC

1. Risk Rating: HIGH
   The company shows very limited tangible assets and working capital, with net assets of only £619. The current liabilities almost equal the net current assets figure (both around £4,781 but in opposite signs), indicating tight liquidity. The company is newly incorporated (since October 2022) and has minimal financial history, increasing uncertainty.

2. Key Concerns:

• Liquidity Risk: Negative net current assets (-£4,781) suggest potential challenges in meeting short-term obligations.
• Limited Operating History and Scale: With just 1 employee and intangible fixed assets mainly consisting of goodwill (£5,400), operational sustainability and revenue generation capacity are unproven.
• Concentration of Ownership and Management: Control is heavily concentrated in one individual (Mr. Dennis Thomas Coffey), who also serves as director, which may raise governance concerns and operational risk.

3. Positive Indicators:

• Current Compliance Status: The company is up to date with statutory filings and accounts with no overdue reports, indicating compliance with regulatory requirements.
• Clear Control Structure: Ownership and control are transparent with a single majority controller, which can simplify decision-making.
• Niche Industry Focus: Operating within specialized construction activities (SIC 43999 and 42110) may provide growth opportunities if managed effectively.

4. Due Diligence Notes:

• Investigate the nature and valuation basis of the intangible assets (goodwill), including how this goodwill was generated and whether it is recoverable.
• Obtain recent management accounts or cash flow statements to assess current liquidity and operational cash generation beyond the balance sheet snapshot.
• Review contracts, pipeline of work, and client concentration to evaluate sustainability of business operations and revenue prospects.
• Assess background and track record of the principal director to understand operational capability and governance practices.
• Confirm if any related party transactions exist, especially given the ownership concentration.