Company Number: 13897422

Analysis Date: 2025-07-29 14:54 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   GOOD CONSTRUCTION LTD is an active private limited company operating in the construction sector since early 2022. The company’s latest accounts show a marginally positive net asset position (£285) and a small positive net current asset (£285) as of 31 March 2024, reversing prior year deficits. However, cash on hand has dropped to zero, replaced by debtors (£20,574), indicating potential liquidity risk if collections are delayed. The company’s very short trading history and minimal equity base limit its financial resilience. The director change in mid-2023 and the recent name change suggest possible restructuring. Credit approval is recommended with conditions: close monitoring of cash flow and debtor collections, plus limits on credit exposure until the company demonstrates sustained profitability and improved liquidity.

2. Financial Strength:
   The company’s balance sheet shows a very low equity base (£285) and total assets just exceeding current liabilities. The turnaround from negative net assets in 2023 to slightly positive in 2024 indicates some improvement but remains weak. The absence of cash and reliance on receivables as current assets highlight vulnerability to debtor payment delays. No fixed assets or long-term investments are reported, limiting collateral value. Overall, the financial strength is fragile, typical for a micro-entity in early growth phase, but not robust enough to absorb significant financial shocks.

3. Cash Flow Assessment:
   Cash flow appears constrained, with zero cash at year-end 2024. Current assets are almost entirely debtors, so liquidity depends heavily on timely collections. Net current assets are positive but minimal, providing limited working capital cushion. The company should maintain strict credit control and manage payables carefully to avoid cash shortfalls. Without available cash reserves, the risk of payment difficulties increases, especially if receivables are overdue or impaired.

4. Monitoring Points:

• Debtor aging and collection efficiency to confirm liquidity
• Profit and loss trends in future accounts to assess operational profitability
• Changes in director appointments or ownership that could signal instability
• Timely filing of accounts and confirmation statements to ensure regulatory compliance
• Any increase in current liabilities or overdue payables that may stress working capital