FLORI CONSTRUCTION LONDON LTD

Executive Summary

FLORI CONSTRUCTION LONDON LTD currently faces moderate liquidity challenges evidenced by negative working capital in its latest reporting period, alongside a notable decline in net assets. Despite these concerns, the company maintains regulatory compliance and positive net equity, with operational capability supported by tangible fixed assets. Further investigation into the causes of financial deterioration and business sustainability is recommended to fully assess investment risk.

FLORI CONSTRUCTION LONDON LTD - Analysis Report

Company Number: 13581933

Analysis Date: 2025-07-29 16:26 UTC

1. Risk Rating: MEDIUM
   The company shows a decline in net assets and a negative working capital position in the latest financial year, indicating some liquidity pressures. However, it remains solvent with positive net assets and no overdue filings, mitigating immediate solvency risk.

2. Key Concerns:

• Negative net current assets of £3,476 in 2024 from positive £9,145 in 2023, indicating short-term liquidity stress.
• Decline in net assets from £15,721 (2023) to £9,202 (2024), suggesting profitability or asset value erosion.
• The company operates with only one employee and a single director-shareholder, which may affect operational resilience and governance robustness.

3. Positive Indicators:

• No overdue filings for accounts or confirmation statements, showing regulatory compliance and good administrative control.
• Ownership and control are consolidated under a single individual, potentially allowing swift decision-making.
• The company holds tangible fixed assets (motor vehicles) supporting operational capacity.

4. Due Diligence Notes:

• Investigate reasons behind the sharp decline in current assets and net assets between 2023 and 2024, including profitability trends and cash flow statements.
• Review the company's order book, contract pipeline, and client diversification to assess sustainability of operations given the small headcount.
• Confirm the absence of any contingent liabilities or off-balance sheet obligations that could further impair liquidity.
• Assess director background and capacity to manage all aspects of the business given the limited team structure.
• Examine the motor vehicles' valuation and usage to ensure asset values are accurately reflected.