MAHI CONSTRUCTION BUILD AND DESIGN LTD

Executive Summary

Mahi Construction Build And Design Ltd demonstrates a stable, growing financial position as a small construction business with positive working capital and shareholder equity. While credit approval is justified, ongoing monitoring of cash flow and contract performance is essential due to the company’s micro scale and sector risks. The owner-managed structure offers governance clarity but concentrates operational risk.

MAHI CONSTRUCTION BUILD AND DESIGN LTD - Analysis Report

Company Number: 14006881

Analysis Date: 2025-07-29 20:09 UTC

1. Credit Opinion: APPROVE with conditions. Mahi Construction Build And Design Ltd is a micro-entity in the construction sector showing steady but modest growth in net assets over the last two years. The company’s financial profile is typical for a young, small construction business with limited resources but positive net current assets and equity. The director is the sole controlling shareholder, which simplifies governance but increases owner risk concentration. Credit facilities may be granted on a limited scale with close monitoring of cash flow and contract performance to mitigate sector volatility and early-stage business risks.

2. Financial Strength: The company’s balance sheet shows improving net assets from £851 (2022) to £4,182 (2024), indicating retained earnings or capital injections strengthening equity. Current assets exceed current liabilities by £4,182 as of the latest filing, providing a positive working capital buffer. However, the absolute asset base is small, consistent with a micro company. No long-term liabilities or fixed assets are reported, which reduces leverage risk but also implies limited asset backing. Overall, the financial position is stable but modest in scale.

3. Cash Flow Assessment: Current assets primarily comprise cash and receivables totaling £26,299 with current liabilities of £22,117. Net current assets of £4,182 suggest the company can meet short-term obligations without liquidity stress currently. The small working capital surplus and the absence of long-term debt suggest reliance on operating cash flow and owner funding. The company’s limited scale and sector exposure mean cash flow can be sensitive to project timing and payment cycles; hence, liquidity management is critical.

4. Monitoring Points:

• Maintain close watch on cash flow and receivables collection to avoid liquidity shortfalls.
• Monitor contract pipeline and timely project execution given construction sector risks.
• Track net asset and working capital trends to confirm continued financial strengthening.
• Observe any changes in director/shareholder control or additional debt facilities.
• Review annual accounts for any emerging contingent liabilities or unusual transactions.