MYNEST BUILDERS LTD

Executive Summary

MYNEST BUILDERS LTD is a small, relatively new construction company with a stable micro-entity financial position and no overdue regulatory filings. The company demonstrates positive net current assets and consistent operations, but its limited scale and concentrated control warrant further examination of cash flow and profitability for a comprehensive risk assessment.

MYNEST BUILDERS LTD - Analysis Report

Company Number: 13801386

Analysis Date: 2025-07-29 17:30 UTC

1. Risk Rating: LOW
   MYNEST BUILDERS LTD exhibits a stable micro-entity financial profile with positive net current assets and no overdue filings. The consistent net asset base and modest liabilities suggest low immediate solvency risk for a small construction business.

2. Key Concerns:

• Limited Scale and Resources: As a micro-entity with very modest current assets (£4,694) and net assets (£3,022), the company may be vulnerable to cash flow shocks or unexpected expenses, which could impact operational continuity.
• Concentration of Control: The sole director and majority shareholder (Awais Ali) controls 50-75% of shares and voting rights, which could pose governance risks if checks and balances are limited.
• Relatively New Company: Incorporated in late 2021, the company has a limited track record, which restricts insight into long-term operational stability or growth potential.

3. Positive Indicators:

• Consistent Positive Working Capital: Net current assets have increased modestly from £2,783 in 2022 to £3,022 in 2023, indicating the company maintains an excess of current assets over current liabilities.
• Up-to-Date Filings and Compliance: Both accounts and confirmation statement are filed on time, reflecting sound regulatory compliance and governance practices.
• Steady Workforce: The average number of employees remained stable at 4 over two years, suggesting operational consistency.

4. Due Diligence Notes:

• Cash Flow Details: Investigate cash flow statements or bank records to assess liquidity beyond the balance sheet snapshot, particularly given the small asset base.
• Revenue and Profitability: Obtain profit and loss accounts to understand the company’s income streams, margins, and any reliance on few clients or contracts.
• Director Background: Review any public records or disclosures regarding the director’s business conduct or other company involvements to evaluate potential governance or reputational risks.