M. KEENAN CONSTRUCTION LTD

Executive Summary

M. Keenan Construction Ltd is an early-stage micro construction business with limited financial resources and a working capital shortfall. Credit facilities may be conditionally approved with prudent limits and close monitoring due to unproven cash flow and minimal equity. Attention should focus on liquidity management and operational growth to strengthen the credit profile.

M. KEENAN CONSTRUCTION LTD - Analysis Report

Company Number: 14718566

Analysis Date: 2025-07-29 18:01 UTC

1. Credit Opinion: CONDITIONAL APPROVAL

13. Keenan Construction Ltd is a newly incorporated micro-entity with limited financial history. The company shows positive net assets (£304) but is currently experiencing net current liabilities of £6,240, indicating a working capital deficit. Given the early stage of operations and small scale, credit facilities may be cautiously extended subject to close monitoring and possibly supported by personal guarantees or collateral. The company’s ability to service debt is unproven, so lending should be conservative and incremental.

2. Financial Strength
   The balance sheet reveals very modest fixed assets (£6,544) and current assets (£28,522), offset by current liabilities of £34,762. Net assets are positive but minimal (£304), reflecting the startup phase. The small equity base and working capital deficiency highlight limited financial buffer to absorb shocks. However, no overdue filings or regulatory issues are apparent, and the sole director holds significant control, suggesting stable governance but limited diversification of management risk.

3. Cash Flow Assessment
   The negative net current assets position indicates potential liquidity strain, suggesting the company may rely on short-term funding or director loans to meet liabilities as they fall due. Cash flow visibility is limited due to the short trading period. It will be important to assess ongoing cash inflows from contracts and manage creditor payment terms carefully. Maintaining or improving working capital through better receivables management or additional equity injections will be critical.

4. Monitoring Points

• Quarterly review of cash flow forecasts and working capital position.
• Timely filing of next annual accounts and confirmation statement to avoid compliance risk.
• Track contract wins and revenue growth to support financial improvements.
• Monitor director’s financial support and any changes in ownership or management.
• Watch for trends in current liabilities growth relative to assets to avoid liquidity crunch.