IR DECORATORS LTD

Executive Summary

IR DECORATORS LTD shows improving financial health with growing net assets and positive working capital, supported by timely compliance with filing obligations. While the company’s scale is small and transparency limited due to micro-entity reporting, there are no immediate solvency or liquidity concerns evident. Further review of profitability and creditor terms is advisable to confirm ongoing operational stability.

IR DECORATORS LTD - Analysis Report

Company Number: 13109046

Analysis Date: 2025-07-20 14:00 UTC

1. Risk Rating: LOW
   The company exhibits a solid net asset base with positive net current assets and shareholders’ funds that have increased significantly over the last two years, indicating improving financial strength. There are no overdue filings or indications of regulatory non-compliance. The business is small in scale but appears to be operationally stable.

2. Key Concerns:

• Moderate level of long-term creditors (£11,417 as of 2024), which should be monitored to ensure the company’s solvency is not compromised in the future.
• Limited share capital (£100), which is typical for micro companies but may limit financial flexibility or access to external financing.
• The company has not filed a profit and loss account publicly, reducing transparency on operational profitability and cash flow performance.

3. Positive Indicators:

• Consistent growth in net assets from £6,266 in 2021 to £34,557 in 2024, reflecting retained earnings or capital injections.
• Net current assets improved markedly to £19,378 in 2024, suggesting good short-term liquidity to meet obligations.
• No overdue statutory filings, demonstrating compliance with regulatory requirements.
• Director is also the sole significant controller, which can facilitate swift decision-making and strong governance alignment.

4. Due Diligence Notes:

• Review the underlying profitability and cash flow metrics not disclosed in the micro-entity accounts to confirm operational sustainability.
• Assess the nature and terms of the long-term creditors to understand any potential solvency risks.
• Confirm whether related party transactions exist given the sole director/shareholder structure.
• Verify the company’s ability to maintain or grow its employee base given the current workforce size (6 employees).
• Check for any contingent liabilities or off-balance sheet commitments that might affect financial health.