Company Number: 13118368

Analysis Date: 2025-07-29 20:23 UTC

1. Risk Rating: LOW
   Midland Bricklaying Contracts Ltd demonstrates a solid financial position for a micro-entity with strong net current assets and net assets relative to liabilities. The company is active, compliant with filing deadlines, and shows no signs of financial distress or governance issues.

2. Key Concerns:

• Absence of employees reported in accounts may indicate reliance on subcontractors or limited operational scale, which could affect sustainability if contract flow reduces.
• The presence of significant accruals and deferred income (£130k) without detailed disclosure warrants review to understand the nature and timing of these liabilities or income recognition.
• Limited financial history and scale as a micro-entity restrict visibility into long-term operational performance and resilience to market fluctuations.

3. Positive Indicators:

• Positive net current assets of £299k and net assets of £185k suggest good short-term liquidity and solvency.
• Timely filing of accounts and confirmation statements reflects good regulatory compliance and governance discipline.
• Directors have equal shareholding and voting control, providing clear and stable management structure.
• Fixed assets have increased from zero to £15,940, indicating some investment in tangible resources.
• Operating in the construction sector with SIC codes for both domestic and commercial buildings may provide diversified revenue streams.

4. Due Diligence Notes:

• Review the nature and details of the accruals and deferred income to assess any contingent liabilities or revenue recognition risks.
• Investigate business model to understand how operations are conducted without employees—specifically subcontractor arrangements and contractual risk exposure.
• Assess contract pipeline and client base to evaluate sustainability and growth prospects in a competitive construction market.
• Verify credit terms with suppliers and customers to confirm cash flow stability given working capital reliance.
• Confirm absence of director disqualifications or legal proceedings beyond Companies House filings.