POOLHEAD DEVELOPMENTS LTD

Executive Summary

Poolhead Developments Ltd is a very young micro-sized construction specialist with a near-zero net asset base and minimal financial history. The company’s balance sheet reflects a fragile financial position with virtually no equity cushion, raising concerns about its ability to service credit obligations. Without demonstrated profitability or cash flow, credit extension is not recommended at this stage, though ongoing monitoring of financial performance and liquidity is advised.

POOLHEAD DEVELOPMENTS LTD - Analysis Report

Company Number: 14519141

Analysis Date: 2025-07-20 17:07 UTC

1. Credit Opinion: DECLINE
   Poolhead Developments Ltd is a newly incorporated micro-entity with minimal financial history and very limited net asset base (£63). The company's current assets and liabilities nearly offset each other, resulting in negligible working capital and equity. The lack of profitability data and absence of an audit increase uncertainty regarding financial stewardship and business viability. Given these factors and the company's very recent formation (December 2022), it is not advisable to extend credit at this stage without substantial additional security or guarantees.

2. Financial Strength:
   The balance sheet shows current assets of £1,186,620 against current liabilities of £1,186,557, leaving net current assets and net assets of only £63. This razor-thin equity base indicates the company is essentially breaking even on a net asset basis and is highly leveraged at the micro scale. The absence of fixed assets and minimal capital reserves suggest limited buffer to absorb financial shocks. The company is reliant on its controlling shareholder (Kgw Holdings Limited) which owns between 75-100% of shares and voting rights, but no evidence of shareholder loans or other capital injections is provided.

3. Cash Flow Assessment:
   With current assets nearly equal to current liabilities, working capital is effectively neutral, indicating tight liquidity. There is no information on cash flow from operations, receivables quality, or payables terms, which prevents a robust cash flow analysis. Given the micro-entity status and short trading history, the company’s ability to generate consistent positive cash flows is uncertain. The minimal net assets imply very limited financial flexibility to cover unexpected expenses or delays in cash inflows.

4. Monitoring Points:

• Monitor subsequent annual accounts for improvements in net assets and profitability.
• Track cash flow statements when available to assess operating cash generation.
• Review any shareholder capital contributions or loan arrangements that might support liquidity.
• Observe management’s ability to maintain timely filings and compliance given the young age of the company.
• Watch for any changes in control or director appointments that might affect governance and risk profile.