OTLEY ROOFING AND BUILDING LTD

Executive Summary

Otley Roofing and Building Ltd demonstrates current compliance with filing requirements and maintains a positive but minimal net asset position, reflecting a small-scale operation with limited financial cushioning. The absence of profit and loss disclosures and low equity base warrant further investigation into operational profitability and cash flow stability before investment consideration. Overall, the company shows modest financial stability with some liquidity and capitalization concerns.

OTLEY ROOFING AND BUILDING LTD - Analysis Report

Company Number: 12600173

Analysis Date: 2025-07-19 11:55 UTC

1. Risk Rating: MEDIUM
   The company shows modest positive net current assets and shareholders' funds as of the latest accounts, indicating it can currently meet short-term obligations. However, the very low equity base (£570) and historical negative net assets in 2021 suggest limited financial buffer and potential vulnerability to adverse events.

2. Key Concerns:

• Minimal Net Assets and Equity: Net assets have declined from £1,251 in 2023 to £570 in 2024, reflecting very thin capitalization and limited financial resilience.
• Volatile Working Capital: Net current assets declined sharply from £1,251 in 2023 to £570 in 2024, indicating reduced liquidity headroom.
• Lack of Profit and Loss Disclosure: No profit and loss account has been filed, limiting insight into operational performance, profitability, and cash flow generation.

3. Positive Indicators:

• Current Compliance: No overdue filings for accounts or confirmation statements, indicating good regulatory compliance and governance discipline.
• Active Trading Status: The company is active with an operational website and direct contact details, supporting ongoing business activities.
• Micro Entity Reporting: Use of micro-entity accounting standards suggests a simple structure and likely low overhead costs, which can aid stability.

4. Due Diligence Notes:

• Obtain and review detailed profit and loss statements and cash flow information to assess operational sustainability and profitability trends.
• Investigate the cause of the previous negative net assets position and whether this has been fully remedied.
• Confirm whether there are any significant off-balance sheet liabilities or contingent risks not reflected in the micro-entity accounts.
• Assess the trading relationship and credit terms with key suppliers and customers to evaluate working capital risk.