HJ RESIDENTIAL BUILDING SURVEYS LTD

Executive Summary

HJ Residential Building Surveys Ltd presents a low risk profile based on its current financials and compliance status. Despite a decrease in net assets and a sole director/shareholder model, the company maintains positive liquidity and timely filings. Further due diligence on operational performance and governance is recommended to ensure long-term stability.

HJ RESIDENTIAL BUILDING SURVEYS LTD - Analysis Report

Company Number: 13887681

Analysis Date: 2025-07-20 17:07 UTC

1. Risk Rating: LOW
   The company demonstrates a stable financial position with positive net current assets and net assets. It is current on all filings with no overdue accounts or confirmation statements. The micro-entity status limits complexity and risk exposure.

2. Key Concerns:

• Declining net assets: Net assets decreased from £17,394 in 2023 to £13,598 in 2024, indicating a reduction in retained profits or capital.
• Small scale and limited operational data: Being a micro-entity with only one employee (the director) may constrain business growth and diversification.
• Concentration of control: The single director owns 75-100% shares and is also the company secretary, which may pose governance risks due to lack of oversight.

3. Positive Indicators:

• Positive working capital: Net current assets of £13,990 in 2024 indicate the company can meet short-term liabilities comfortably.
• Timely compliance: No overdue filings or outstanding regulatory requirements were noted, suggesting good governance discipline.
• Low liabilities: Current liabilities have decreased from £6,743 in 2023 to £3,155 in 2024, improving liquidity position.

4. Due Diligence Notes:

• Investigate reasons behind the decline in net assets and assess if this trend is expected to continue or is a one-off event.
• Review the company’s revenue streams and profitability to understand operational sustainability given the single employee structure.
• Validate internal controls and governance practices, considering the sole director’s multiple roles and shareholding concentration.
• Confirm absence of any contingent liabilities or off-balance sheet obligations not visible in the micro-entity accounts.
• Assess industry risks given the SIC codes related to specialized construction and building completion activities.