NINE CONSTRUCTING & CONSULTING LTD

Executive Summary

Nine Constructing & Consulting Ltd is a small, newly established construction company with a positive but limited financial base and adequate short-term liquidity. Given the early stage and limited trading history, credit approval should be conditional on further operational and cash flow evidence. Ongoing close monitoring of working capital and contract performance is recommended to mitigate risks.

NINE CONSTRUCTING & CONSULTING LTD - Analysis Report

Company Number: 14499599

Analysis Date: 2025-07-20 17:09 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Nine Constructing & Consulting Ltd is a recently incorporated (Nov 2022) small private limited company operating in the commercial building construction sector. The company shows a modest but positive net asset base (£32.4k as of Nov 2024) and positive net current assets (£27.8k), indicating working capital adequacy at face value. However, the company is still in its infancy with limited financial history and low tangible fixed assets (£4.6k). The absence of turnover data and reliance on cash and minimal debtors in the latest year suggests either minimal trading or a shift in business operations. The directors appear to be actively involved, with no negative governance flags. Given the early stage and limited scale, credit approval should be conditional on obtaining more detailed trading and cash flow forecasts, confirmation of contract pipeline, and ongoing monitoring of liquidity and creditor payment performance.

2. Financial Strength:
   The balance sheet is lightly capitalised with shareholders’ funds of £32.4k and tangible fixed assets of £4.6k. The net current assets position is positive (£27.8k) due to cash holdings (£71.9k) exceeding current liabilities (£44.1k). The reduction from the prior year’s higher debtors (£122.1k in 2023) and current liabilities (£90.8k in 2023) indicates some working capital restructuring. The small asset base and limited equity imply a low financial buffer against business shocks but no immediate solvency concerns. The company’s classification as a small entity means it is exempt from audit, limiting the depth of verified financial data.

3. Cash Flow Assessment:
   Cash of £71.9k at the latest year-end supports short-term liquidity, with current liabilities manageable at £44.1k. The company’s working capital dynamics show a decrease in trade creditors and a rise in tax liabilities, suggesting normal operational activity and tax accruals. Absence of trade debtors as of Nov 2024 may point to either prepayment by clients or a pause in invoicing cycles, which requires clarification. The single employee count indicates low fixed overheads. Overall, cash flow appears stable currently but monitoring is essential to ensure sustained operational cash generation.

4. Monitoring Points:

• Track turnover and profitability trends as new accounts are filed to assess business growth trajectory.
• Monitor cash flow statements and receivables/payables aging to detect liquidity stress early.
• Review director and shareholder activity, especially given the significant control held by one individual, to ensure governance and financial stewardship remain sound.
• Confirm contract awards and pipeline in the construction sector to validate future revenue streams.
• Watch tax and social security creditor levels to avoid accumulation of unpaid liabilities.