ONE SOURCE CONSTRUCTION SERVICES LTD

Executive Summary

One Source Construction Services Ltd shows a strong and improving financial position with growing net assets and stable liquidity. The company’s balance sheet is healthy, with no signs of financial distress or insolvency risk. Credit approval is recommended with routine monitoring of working capital management and sector-specific risks.

ONE SOURCE CONSTRUCTION SERVICES LTD - Analysis Report

Company Number: 12412539

Analysis Date: 2025-07-20 18:26 UTC

1. Credit Opinion: APPROVE
   One Source Construction Services Ltd demonstrates strong and improving financial metrics for a micro-entity in the construction sector. The company shows increasing net assets and shareholders' funds, indicating solid capitalization and retained earnings. There is no indication of overdue filings, insolvency proceedings, or director disqualifications, and the business is actively trading with growth in fixed assets and stable working capital. The director has maintained compliance with statutory requirements, and the firm’s increasing net assets suggest a capacity to service debt and honor financial commitments.

2. Financial Strength:
   The company’s balance sheet reflects a healthy financial position for its size. Net assets have grown from approximately £17.7k in 2020 to £341.5k in 2025, showing consistent capital accumulation. Fixed assets have increased significantly, from £1k to £266.8k, reflecting investment in property, plant, or equipment which may support operational capacity. Current assets of £162.6k comfortably cover current liabilities of £71k, resulting in a strong net current asset position of £102.1k. No long-term debt is reported as of the latest accounts, improving solvency. Equity fully funds the company’s assets, indicating no reliance on external long-term borrowings.

3. Cash Flow Assessment:
   Working capital is positive and sufficient, with net current assets at £102k, showing liquidity adequacy to meet short-term obligations. Current liabilities are moderate and well-covered by current assets. The slight reduction in current assets compared to prior year is offset by increased fixed assets, consistent with a growth phase. Absence of audit exemption and small unpaid pension contributions suggest no significant cash flow distress. Overall, liquidity appears stable with no signs of cash flow strain.

4. Monitoring Points:

• Maintain focus on accounts filing deadlines to avoid penalties.
• Monitor cash conversion cycle closely, especially given the construction sector’s potential for payment delays.
• Watch for any increase in accruals or deferred income, which rose notably in the latest year (£27.5k from £2.1k), possibly indicating timing differences in revenue recognition or expenses.
• Track fixed asset utilization and depreciation policies to ensure asset values are sustainable and reflective of operational use.
• Continue monitoring industry conditions, especially construction sector risks such as material cost inflation or project delays.