NGR PLUMBING AND HEATING SPECIALISTS LIMITED

Executive Summary

NGR Plumbing and Heating Specialists Limited is currently experiencing significant financial distress, characterized by a large negative working capital and a deteriorating net asset position, raising high solvency and liquidity risks. While compliance with filing obligations and a stable operational headcount suggest some governance and operational continuity, the company’s financial position warrants careful scrutiny before investment consideration. Further investigation into cash flows, management plans, and operational performance is essential to assess recovery prospects.

NGR PLUMBING AND HEATING SPECIALISTS LIMITED - Analysis Report

Company Number: 13305501

Analysis Date: 2025-07-29 13:14 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns as demonstrated by a large negative net current assets position and a substantial decline in net assets over recent years. The consistent negative equity position signals financial distress and a potential inability to meet obligations.

2. Key Concerns:

• Severe Negative Net Current Assets: As of 31 March 2024, net current assets are reported at approximately -£75,562, a substantial deterioration from -£23,706 in the prior year. This indicates current liabilities far exceed current assets, raising immediate liquidity risks.
• Negative Net Assets & Shareholders’ Funds: The company’s net assets have fallen from a positive £22,900 in 2022 to a negative £74,732 in 2024, reflecting accumulated losses or possibly undisclosed liabilities. Negative equity is a material red flag for solvency.
• Low Share Capital Relative to Liabilities: With only £1,000 share capital, the company has limited equity buffer to absorb losses, magnifying the risk of insolvency if liabilities are called in or operational cash flow tightens.

3. Positive Indicators:

• Active Status and Up-to-Date Filings: The company remains active and has no overdue accounts or confirmation statements, suggesting compliance with statutory filing requirements and ongoing corporate governance adherence.
• Stable Employee Base: The company maintained an average of 3 employees over the past two years, which may indicate some operational stability and controlled overhead.
• Industry Focus: Operating in plumbing, heating, and air-conditioning installation (SIC 43220), a sector with consistent demand, potentially supporting future revenue generation if financial issues are addressed.

4. Due Diligence Notes:

• Investigate Causes of Financial Deterioration: Examine detailed profit and loss data (not currently filed publicly) to understand the drivers behind the sharp decline in net assets and worsening liquidity.
• Assess Cash Flow and Debt Terms: Scrutinize cash flow statements, creditor aging, and any off-balance sheet liabilities or contingent exposures to evaluate short-term liquidity risk more precisely.
• Review Director and Shareholder Stability: Given recent changes in directors and PSCs, assess management continuity and strategic plans to address financial distress. Also verify whether related party transactions or director loans exist.
• Confirm Operational Viability: Verify ongoing contracts, client base, and market positioning to assess the company’s ability to generate sustainable cash flows to support operations and repay liabilities.