Company Number: 15162404

Analysis Date: 2025-07-20 18:57 UTC

1. Risk Rating: LOW to MEDIUM
   KLJ BUILDING SERVICES LTD is a newly incorporated micro-entity with no overdue filings and a positive net asset position. The balance sheet shows net assets of £26,322, with net current assets of £16,705, indicating a basic buffer over current liabilities. However, the company is very young (incorporated less than two years ago) and has limited financial history, which introduces some uncertainty regarding operational sustainability and future cash flows.

2. Key Concerns:

• Limited Operating History: The company has operated for just over one year, restricting visibility on consistent revenue generation and profitability trends.
• Long-Term Liabilities: There are creditors falling due after more than one year (£27,192), which may imply debt obligations that need monitoring in the absence of detailed cash flow data.
• Small Scale and Workforce: As a micro-entity with only 2 employees, the business may face scalability challenges and vulnerability to operational disruptions if key personnel are unavailable.

3. Positive Indicators:

• Positive Net Assets and Working Capital: The company reports net assets of £26,322 and a positive net current asset position, suggesting an ability to meet short-term liabilities.
• Up-to-date Filings and Compliance: No overdue accounts or confirmation statements, indicating good governance and adherence to statutory requirements.
• Clear Control Structure: The significant control and directorship by Mr Karl Jones, with majority voting rights and ability to appoint/remove directors, implies stable decision-making authority.

4. Due Diligence Notes:

• Review the nature and terms of the long-term creditors to assess solvency risk and potential refinancing needs.
• Obtain cash flow statements or management accounts to evaluate liquidity beyond the snapshot balance sheet figures.
• Investigate business contracts, client base, and revenue streams to understand operational sustainability and growth prospects in the building completion and finishing sector.
• Confirm the background and track record of directors, particularly Karl Jones, to assess management capability and integrity.
• Monitor future filings and financial updates for trends in profitability and working capital management.