KC MONAGHAN CONSTRUCTION LTD

Executive Summary

KC MONAGHAN CONSTRUCTION LTD is a small, micro-entity construction company with minimal net assets and limited operational scale. While it maintains good compliance and a clear business focus, its low capitalization and short operating history warrant caution regarding financial resilience and operational stability. Further detailed cash flow and governance review is recommended before investment.

KC MONAGHAN CONSTRUCTION LTD - Analysis Report

Company Number: NI678643

Analysis Date: 2025-07-29 20:25 UTC

1. Risk Rating: MEDIUM
   The company is currently active with no overdue filings, which is positive. However, the very modest net asset base (£2,419 as of 2024) and minimal share capital (£100) coupled with a single employee suggest limited financial and operational scale. This raises concerns about its capacity to absorb financial shocks or fund growth, placing it at medium risk.

2. Key Concerns:

• Low Capitalization and Net Assets: The net assets are extremely low, indicating limited buffer against liabilities or unforeseen expenses.
• Limited Operational Scale: Only one employee on average and small current assets imply the company may be vulnerable to operational disruptions or cash flow issues.
• Short Track Record and Management Changes: Incorporated in 2021 with a director resignation and replacement in 2023 may indicate some instability or transition risks.

3. Positive Indicators:

• Compliance with Filings: Accounts and confirmation statements are up to date with no overdue filings or penalties, reducing regulatory risk.
• Micro-entity Status: Limited reporting complexity and small scale reduce administrative burden and potential operational overhead.
• Clear Industry Classification: Operating in specialized construction activities with site preparation expertise provides a focused business model.

4. Due Diligence Notes:

• Cash Flow Analysis: Investigate underlying cash flow patterns and working capital management beyond balance sheet snapshots to assess liquidity robustness.
• Contracts and Revenue Streams: Review the nature and stability of contracts or clients to evaluate revenue predictability and operational sustainability.
• Director Backgrounds: Given director change, verify any relevant history or potential conflicts that might affect governance or strategic direction.