PAD BUILDING SERVICES LTD

Executive Summary

PAD Building Services Ltd is a newly incorporated construction company with negative net assets and a current liquidity deficit, indicating elevated financial risk. While the director has demonstrated commitment and regulatory compliance is up to date, the company’s limited operating history and working capital shortfall warrant careful scrutiny of future financial support and business prospects before investment consideration.

PAD BUILDING SERVICES LTD - Analysis Report

Company Number: 14959094

Analysis Date: 2025-07-29 14:27 UTC

1. Risk Rating: HIGH
   The company exhibits a high risk profile primarily due to its negative net assets, current liabilities exceeding current assets, and being in its first financial year without a track record of operational performance.

2. Key Concerns:

• Negative Net Assets: Shareholders' deficit of £2,569 indicates the company’s liabilities exceed its assets, suggesting potential solvency issues.
• Liquidity Shortfall: Current liabilities (£9,247) surpass current assets (£6,678), including low cash reserves (£5,513), which may impair the company’s ability to meet short-term obligations.
• Limited Operational History: Incorporated in June 2023, the company has only one financial period filed, restricting the ability to assess business sustainability and financial trends.

3. Positive Indicators:

• Director Support: The director has pledged short-term support and owed the company £66 at year-end, indicating a degree of commitment and potential for financial backing.
• Compliance Status: No overdue filings or confirmation statements, demonstrating regulatory compliance to date.
• Small Company Exemption Utilization: The company benefits from the small companies regime allowing for simplified reporting, consistent with its current scale and stage.

4. Due Diligence Notes:

• Investigate the director’s capacity and willingness to provide continued financial support, given current negative equity and liquidity constraints.
• Review cash flow projections and contracts/orders to assess operational viability and potential for revenue generation going forward.
• Confirm absence of any regulatory or legal issues beyond publicly available information, especially regarding director conduct or related party transactions.