NEUX RENOVATIONS LTD

Executive Summary

Neux Renovations Ltd presents a low to medium risk profile consistent with a small micro-entity in the building development sector. The company shows improving net asset growth and maintains good compliance, but limited scale and concentrated control warrant further review of operational and governance factors. Additional financial details, especially profitability and cash flows, should be sought to confirm long-term sustainability.

NEUX RENOVATIONS LTD - Analysis Report

Company Number: 14305256

Analysis Date: 2025-07-29 20:25 UTC

1. Risk Rating: LOW to MEDIUM
   The company is currently active and not in liquidation, with positive net assets and increasing shareholder funds over the past two years. However, being a micro-entity with limited financial information and a very small workforce means operational scale and financial depth are limited, which introduces some inherent risk.

2. Key Concerns:

• Limited Scale and Resources: With only two employees and micro-entity status, the business has limited operational capacity and financial buffer.
• Concentration of Control: Significant control and directorship are held by a single individual, Mr Edward Charles Molyneux, which can increase governance risk due to lack of broader oversight.
• Modest Net Assets: Although net assets have grown to £48,565 in 2024, this remains a modest figure which may constrain liquidity and ability to absorb financial shocks.

3. Positive Indicators:

• Compliance and Filing: Accounts and confirmation statements are up to date with no overdue filings, indicating good regulatory compliance.
• Improving Financial Position: Current assets and net assets have shown improvement year on year, suggesting positive business momentum.
• No Indication of Insolvency: The company is not in liquidation or administration, and current liabilities are covered by current assets with a positive net working capital.

4. Due Diligence Notes:

• Examine Cash Flow and Profitability: The absence of profit and loss details limits assessment of operational profitability and cash flow stability. Request management accounts or further financial disclosures if possible.
• Review Contractual Backlog and Client Base: Given the SIC code (development of building projects), confirm current project pipeline and client diversification to assess revenue sustainability.
• Assess Director Governance: Investigate if there are additional directors or governance mechanisms to mitigate concentration risk around the single controlling director.