N.E.B CONSTRUCTION LTD

Executive Summary

N.E.B CONSTRUCTION LTD displays a stable financial condition typical of a small construction development firm, with positive working capital and net assets indicating sound liquidity. However, a slight decline in net assets and absence of profitability details suggest monitoring operational efficiency closely. With prudent management and enhanced financial oversight, the company is well-positioned to maintain its financial wellness.

N.E.B CONSTRUCTION LTD - Analysis Report

Company Number: NI677949

Analysis Date: 2025-07-29 19:53 UTC

Financial Health Assessment of N.E.B CONSTRUCTION LTD (As of 31 March 2024)

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1. Financial Health Score: B

Explanation:
N.E.B CONSTRUCTION LTD exhibits a stable financial position typical of a micro-entity in its early years. The company maintains positive net current assets and shareholders’ funds, indicating a sound liquidity position. However, the relatively small absolute amounts and slight reduction in net assets from the prior year suggest limited scale and some early signs of tightening working capital. The absence of audit and limited disclosures typical for micro-entities restrict deeper insight but no immediate financial distress symptoms are evident.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	6,550	Indicates available short-term resources (cash, receivables, stock).
Current Liabilities	1,421	Short-term obligations due within one year.
Net Current Assets	5,129	Positive working capital, showing ability to cover short-term debts comfortably.
Net Assets (Shareholders Funds)	5,129	Equity value after liabilities; positive but modest, reflecting company scale.
Share Capital	1.00	Nominal capital, typical for small private limited companies.
Average Number of Employees	1	Micro business size, low operational complexity.
Account Category	Micro	Minimal filing requirements, indicating small size and scale.
Profit and Loss Account	Not filed	Limits insight into profitability and operational cash flow health.

Interpretation of Vital Signs:
The company maintains a "healthy cash flow" signified by positive net current assets, sufficient to meet short-term obligations. The slight decrease in net assets from £6,608 in 2023 to £5,129 in 2024 could be a mild "symptom of distress" warranting monitoring but not alarming at this stage. The minimal share capital and limited employee count reflect early-stage or niche operations with low overhead.

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3. Diagnosis

N.E.B CONSTRUCTION LTD appears financially stable for a micro-sized construction development business. The company is in an early growth or establishment phase, reflected in small asset and equity base. The positive net current assets reveal no liquidity issues, but the shrinking net assets suggest a need to watch operational efficiency and profitability closely. The lack of a profit and loss statement prevents detailed diagnosis of earnings quality or cash flow generation—key to long-term sustainability. No signs of insolvency or financial distress such as negative working capital or overdrafts are present, indicating a generally "healthy financial pulse."

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4. Recommendations

• Enhance Profitability Monitoring: Although accounts comply with micro-entity standards, preparing and reviewing a detailed profit and loss statement internally will help identify cost drivers and revenue trends to prevent worsening net asset erosion.
• Strengthen Working Capital Management: Maintain or improve net current assets by timely collection of receivables and prudent management of payables to avoid liquidity stress.
• Plan for Growth Capital: With minimal share capital, consider planning for additional equity or external finance if growth opportunities arise, to support fixed asset acquisition or larger project bids.
• Maintain Compliance and Transparency: Continue timely filing of accounts and confirmation statements to avoid penalties and maintain stakeholder confidence.
• Strategic Business Review: Given the micro scale, periodic strategic reviews to explore market positioning, project pipeline, and operational efficiencies will help sustain and improve financial health.

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