QUARRY UPVC LTD

Executive Summary

Quarry UPVC Ltd exhibits improving financial position with positive but minimal net assets and working capital. While regulatory compliance and operational activity growth are positive, the company’s tight liquidity and reliance on related-party financing warrant caution. Further analysis of cash flow and funding arrangements is recommended to fully assess financial stability.

QUARRY UPVC LTD - Analysis Report

Company Number: NI670671

Analysis Date: 2025-07-20 15:09 UTC

1. Risk Rating: MEDIUM
   The company demonstrates modest net current assets and positive net asset growth, but the absolute values are low, indicating limited financial buffer. The presence of bank loans and significant amounts owed to group undertakings suggest some reliance on external and related-party financing, which may present refinancing or liquidity risks.

2. Key Concerns:

• Low Working Capital: Net current assets are positive but marginal (£2,101 as of June 2024), indicating tight liquidity that could strain the company’s ability to meet short-term obligations without additional financing.
• Reliance on Group Undertakings: Significant creditor balances owed to group undertakings (£19,558) may indicate dependency on related entities for cash flow support, which could be a risk if group support diminishes.
• Modest Share Capital and Equity Base: Share capital remains nominal (£100), and shareholders’ funds are minimal (£2,101), limiting the company’s capacity to absorb losses or fund growth internally.

3. Positive Indicators:

• Consistent Positive Net Assets Growth: The company improved net assets from a negative position in 2021 to positive in subsequent years, suggesting operational improvements or capital injections.
• Up-to-date Filings: Both accounts and confirmation statements are filed on time, indicating compliance with regulatory requirements and no immediate governance concerns.
• Stock and Debtors Growth: Increase in stock and trade debtors alongside current assets growth may reflect expanding business activity.

4. Due Diligence Notes:

• Investigate the terms and sustainability of amounts owed to group undertakings and bank loans, including any repayment schedules or covenants.
• Review the company’s cash flow statements and projections to assess liquidity management and ability to meet short-term liabilities.
• Examine the absence of employees as reported (average employees: NIL) to understand operational model and potential risks related to relying on contractors or outsourcing.
• Confirm the nature of the company’s contracts and customer base to assess stability and revenue reliability.
• Verify any contingent liabilities or off-balance-sheet commitments not disclosed in the accounts.