JOE MCPHERSON DIGGER & GROUNDWORKS LTD

Executive Summary

Joe McPherson Digger & Groundworks Ltd operates as a micro-entity with limited scale and has shown some strengthening of net assets over the latest year. However, consistent negative net current assets highlight liquidity risks that warrant monitoring. The company remains compliant with filing requirements but limited disclosure restricts full financial assessment, suggesting further due diligence is advisable before investment.

JOE MCPHERSON DIGGER & GROUNDWORKS LTD - Analysis Report

Company Number: SC697487

Analysis Date: 2025-07-29 14:56 UTC

1. Risk Rating: MEDIUM
   The company shows modest growth in net assets and equity but continues to carry net current liabilities, indicating ongoing working capital pressure. The micro-entity status and single employee suggest limited operational scale, which may impact resilience.

2. Key Concerns:

• Persistent negative net current assets (£3,389 at 2024 year-end) indicate liquidity constraints and potential difficulty meeting short-term obligations.
• Limited scale with only one employee and nominal share capital (£100) may restrict operational flexibility and ability to absorb shocks.
• Absence of an audit and limited financial disclosures (no profit and loss account included) reduce transparency and hinder comprehensive risk assessment.

3. Positive Indicators:

• Growth in fixed assets from £3,293 (2023) to £9,795 (2024) suggests some reinvestment in operational capacity.
• Improvement in shareholders’ funds from £737 (2023) to £6,406 (2024) signals capital accumulation or retained earnings growth.
• On-time filing of accounts and confirmation statements indicates compliance with statutory requirements and no immediate regulatory concerns.

4. Due Diligence Notes:

• Review underlying cash flow and payment history to evaluate liquidity management, given negative working capital.
• Obtain profit and loss information to assess profitability trends and operational sustainability.
• Investigate the director’s financial commitments and any related party transactions due to the company’s small size and director-centric structure.