HCJC COMMERCIAL SERVICES LTD

Executive Summary

HCJC Commercial Services Ltd presents a low solvency and liquidity risk profile based on its initial financial statements showing positive net assets and no overdue filings. However, the company’s limited operational history and concentration of control warrant further investigation into its business activities and future prospects. Overall, compliance is satisfactory with no immediate red flags detected.

HCJC COMMERCIAL SERVICES LTD - Analysis Report

Company Number: 14414272

Analysis Date: 2025-07-29 14:45 UTC

1. Risk Rating: LOW
   HCJC Commercial Services Ltd appears financially stable with positive net current assets and net assets, no overdue filings, and no indication of insolvency or liquidation. The company's financials, while limited in history given its recent incorporation, show a sound liquidity position supported by cash balances exceeding short-term liabilities.

2. Key Concerns:

• Limited Operating History: Incorporated in late 2022, the company has only one reported financial period, limiting the ability to assess longer-term operational performance and consistency of cash flows.
• Single Director and Shareholder Control: The sole director and 100% shareholder is also the controlling person. This concentration of control could pose governance risks if not mitigated by robust internal controls.
• No Reported Employees or Audit: The absence of employees and audit exemption are consistent with a micro-entity but limit transparency around operational scale and external validation of accounts.

3. Positive Indicators:

• Strong Liquidity Position: Cash of £55,771 against current liabilities of £15,085 results in net current assets of £40,686, indicating the company can meet its short-term obligations comfortably.
• Up-to-date Compliance: Both accounts and confirmation statement filings are up to date with no overdue notices, reflecting adherence to statutory requirements.
• Clear Ownership and Management: The director's identity and control structure are transparent, facilitating accountability.

4. Due Diligence Notes:

• Obtain detailed turnover and profitability figures as they were not disclosed; assess revenue generation and cost structure to evaluate operational sustainability.
• Review any contracts or order books to understand business pipeline given the SIC code relates to civil engineering projects which can be project-based and cyclical.
• Verify absence of any contingent liabilities or off-balance-sheet commitments not captured in the filed accounts.
• Consider director’s background and expertise in the relevant industry given the occupation listed is physiotherapy, which may be unrelated to construction activities.