Company Number: 12903022

Analysis Date: 2025-07-29 20:16 UTC

1. Risk Rating: LOW
   KP Builders & Construction Limited exhibits a solid net asset position relative to its size and category, with positive net current assets and shareholders’ funds consistently reported. No overdue filings or liquidation status reduce regulatory risk. The company’s micro-entity status indicates simplicity and limited scale, which lowers complexity risk.

2. Key Concerns:

• Declining fixed assets: Fixed assets have decreased steadily from £32,824 in 2020 to £13,848 in 2024, potentially indicating asset disposals or underinvestment.
• Limited scale and operations: With only one employee on average and micro-entity reporting, operational capacity and growth potential are constrained.
• No detailed profitability or cash flow data: The absence of profit and loss details limits insight into operational performance and cash generation, which is critical for assessing solvency beyond balance sheet strength.

3. Positive Indicators:

• Positive net current assets improving in 2024 (£5,790), indicating adequate short-term liquidity to cover current liabilities (£2,587).
• Consistent shareholders’ funds around £19,000 suggest stable equity backing.
• Timely and up-to-date statutory filings (accounts and confirmation statement) demonstrate good compliance and governance practices.
• No signs of distress such as liquidation or administration, and active company status maintained since incorporation in 2020.

4. Due Diligence Notes:

• Review detailed profit and loss accounts or management accounts to assess revenue trends, profitability, and cash flow sufficiency, which are not disclosed here.
• Investigate reasons for reduction in fixed assets and whether this affects operational capacity or indicates strategic shifts.
• Confirm director and management background for operational stability, given the very small employee base and reliance on a single director.
• Evaluate contract pipeline or order book to assess future revenue sustainability in the building completion sector (SIC 43390).
• Verify if any contingent liabilities or off-balance sheet obligations exist that might impact solvency.