LUPA BUILDING AND CONSTRUCTION LTD

Executive Summary

LUPA BUILDING AND CONSTRUCTION LTD presents a low solvency and compliance risk based on its first year accounts showing positive net assets and current compliance with filing obligations. The company’s limited operating history and modest cash reserves warrant further review of its operational viability and receivables quality. Overall, the company appears solvent and regulated but requires ongoing monitoring to confirm sustainable business performance.

LUPA BUILDING AND CONSTRUCTION LTD - Analysis Report

Company Number: 14837353

Analysis Date: 2025-07-29 15:06 UTC

1. Risk Rating: LOW

Justification: LUPA BUILDING AND CONSTRUCTION LTD is a recently incorporated private limited company (since May 2023) with filed accounts showing positive net current assets and net assets of £10,254 as of May 31, 2024. The company is compliant with filing deadlines and is not in liquidation or any formal distress process. The financial position, while modest, indicates the company is currently solvent and maintaining a positive working capital position.

2. Key Concerns:

• Limited operating history: The company has been active for just over one year, which limits the ability to assess operational stability and track record.
• Modest cash balance: Cash at bank is only £2,884 relative to current liabilities of £2,796, leaving little liquidity buffer for unforeseen expenses or delays in receivables collection.
• Director turnover: One director resigned shortly after incorporation (within about six weeks), which could be a governance or stability concern depending on context.

3. Positive Indicators:

• Positive net current assets (£10,254) indicating short-term solvency and ability to meet current liabilities.
• Shareholders’ funds and net assets are positive, reflecting initial capital injection and some retained earnings.
• No overdue filings and up-to-date confirmation statement demonstrate regulatory compliance.
• Majority ownership and control concentrated in a single person (Mr. Patrik Mihaly Lugosi), which may allow for decisive management and streamlined governance.

4. Due Diligence Notes:

• Investigate the nature and collectability of debtors (£10,166) to ensure receivables are genuine and realizable in due course.
• Understand the reason behind the early resignation of the first director and verify the current director’s capacity and experience to manage the company.
• Review turnover and profitability trends since incorporation to assess operational sustainability and growth prospects.
• Confirm details of tax liabilities and any contingent liabilities not apparent from the balance sheet.
• Verify the company’s contract pipeline and client base given the SIC codes indicating construction and carpentry activities.