PAPEL BUILDING SOLUTIONS LIMITED

Executive Summary

PAPEL Building Solutions Limited demonstrates a low solvency risk profile with growing net assets and positive working capital. Regulatory compliance appears sound with no overdue filings. Limited financial disclosure due to micro-entity status constrains detailed liquidity and operational analysis; further management information is recommended for comprehensive risk assessment.

PAPEL BUILDING SOLUTIONS LIMITED - Analysis Report

Company Number: 13150623

Analysis Date: 2025-07-20 11:33 UTC

1. Risk Rating: LOW
   Justification: The company exhibits solid net asset growth, positive net current assets, and no overdue filings. The increase in fixed assets and shareholders’ funds indicates ongoing investment and retained earnings, supporting solvency and operational stability.

2. Key Concerns:

• Medium-term liabilities introduced in 2024: £37,500 creditors falling due after more than one year may indicate financing that needs monitoring.
• Limited turnover and profitability data: As a micro-entity, detailed profit and loss insights are not available, limiting assessment of cash flow and operational margins.
• Relatively small share capital (£100) could imply limited initial equity cushion, though this is common in micro companies.

3. Positive Indicators:

• Consistent net asset growth from £92,329 (2023) to £134,387 (2024).
• Positive working capital (£55,181) suggests the company can meet short-term obligations comfortably.
• No overdue accounts or confirmation statement filings, indicating good compliance with regulatory requirements.
• Increase in fixed assets from £14,442 to £117,286 suggests reinvestment in business infrastructure or growth assets.
• Stable director presence with no reported disqualifications or governance issues.

4. Due Diligence Notes:

• Verify nature and terms of the £37,500 creditor balance due after more than one year to assess refinancing or repayment risk.
• Request management accounts or cash flow statements to evaluate operational performance and liquidity beyond balance sheet snapshots.
• Confirm the company’s revenue trends and profitability since these are not disclosed in micro-entity filings.
• Review any related party transactions or director loans if applicable.
• Consider the impact of the recent name change in 2023 on business operations or ownership structure.