NU TEK DEVELOPMENTS LTD

Executive Summary

NU TEK DEVELOPMENTS LTD is a micro-sized construction business showing signs of liquidity stress and a notable decline in net assets over the latest financial year, though it remains solvent. The company benefits from current compliance and ongoing activity but is operationally concentrated in a single director-employee, posing governance and operational risks. Further review of financial details and management capacity is recommended to clarify sustainability and cash flow stability.

NU TEK DEVELOPMENTS LTD - Analysis Report

Company Number: 13477101

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

1. Risk Rating: MEDIUM
   The company shows some signs of financial strain with a recent decline in net assets and a negative net current assets position, but it remains solvent with positive net assets overall. The limited financial history and micro-entity scale restrict a full assessment.

2. Key Concerns:

• Liquidity deterioration: Net current assets moved from a small positive in 2023 (£911) to a negative figure in 2024 (-£8,979), indicating potential short-term cash flow pressure.
• Declining net assets: Net assets halved from £40,473 in 2023 to £20,692 in 2024, suggesting reduced financial buffer and possibly losses or asset disposals.
• Single director control: The sole active director and 75-100% shareholder is also the only employee, which could present operational and governance risks, including over-reliance on one individual.

3. Positive Indicators:

• Compliance: The company is current on both accounts and confirmation statement filings with no overdue returns.
• Ongoing operations: The company is active and not in liquidation or administration, indicating ongoing business activity.
• Micro-entity status: Filing under micro-entity provisions suggests a small, low-complexity business which may limit exposure to large liabilities.

4. Due Diligence Notes:

• Investigate reasons for the sharp decline in net assets and current assets, including any significant liabilities or one-off expenses in the 2024 accounts.
• Review cash flow statements and creditor aging to confirm liquidity status and identify any overdue payables or collection issues.
• Assess management capacity and potential risks associated with a single director/employee controlling the business.
• Confirm nature of fixed assets and whether any disposals or impairments occurred in the latest year.
• Evaluate the business model and contracts given the construction industry classification and limited staff.