FRIEL CONTRACTS LTD

Executive Summary

Friel Contracts Ltd is a small, micro-entity construction company with solid balance sheet indicators and up-to-date filings, resulting in a low risk profile. While the company shows stable liquidity and governance, declines in net assets and fixed assets warrant further analysis to confirm operational sustainability. Overall, compliance and financial position appear sound for its size and scale.

FRIEL CONTRACTS LTD - Analysis Report

Company Number: 13513200

Analysis Date: 2025-07-20 12:03 UTC

1. Risk Rating: LOW
   Friel Contracts Ltd demonstrates a healthy net asset position with positive working capital and no overdue filings. The company’s micro-entity status and consistent compliance with filing deadlines suggest low immediate solvency or regulatory risk.

2. Key Concerns:

• Declining Fixed Assets: There is a reduction in fixed assets from £22,979 in 2021 to £15,491 in 2024, which could suggest asset disposals or underinvestment that may affect operational capacity.
• Shrinking Net Assets: Net assets have decreased from £55,129 in 2023 to £45,888 in 2024, indicating a potential reduction in retained earnings or capital erosion.
• Limited Scale and Staff: The company employs only two people (including directors), which may raise concerns about operational resilience and ability to scale or manage workload fluctuations.

3. Positive Indicators:

• Positive Net Current Assets: Net current assets remain positive at £36,051, indicating sufficient short-term liquidity to cover current liabilities.
• No Overdue Filings: Both accounts and confirmation statements are up to date, reflecting good regulatory compliance and governance.
• Stable Shareholder Control: Ownership is clearly delineated between two directors with significant control, suggesting stable governance and decision-making.

4. Due Diligence Notes:

• Review detailed profit and loss information not filed to understand profitability trends and causes of declining net assets.
• Investigate the reasons behind the reduction in fixed assets to assess impact on operational capacity or financial health.
• Assess contract pipeline and client concentration given small employee base and industry (domestic building construction).
• Confirm absence of director disqualifications or regulatory issues beyond Companies House filings.
• Evaluate cash flow statements if available, given limited financial detail to fully assess liquidity under stress.