R SPEIRS CONTRACTING SERVICES LTD

Executive Summary

R Speirs Contracting Services Ltd maintains positive net asset value and complies with statutory filings, but exhibits liquidity concerns with net current liabilities and reliance on director loans. The company's operational sustainability requires further scrutiny, especially regarding cash flow and asset management. Overall, the company carries a medium risk profile suitable for cautious monitoring and additional due diligence.

R SPEIRS CONTRACTING SERVICES LTD - Analysis Report

Company Number: SC665007

Analysis Date: 2025-07-20 14:09 UTC

1. Risk Rating: MEDIUM
   The company shows a moderate level of solvency risk due to net current liabilities and reliance on director loans, despite positive shareholders’ funds. The micro-entity status limits the detail available, restricting a full risk assessment.

2. Key Concerns:

• Negative net current assets (£38,453 current assets vs. £52,673 current liabilities), indicating potential short-term liquidity pressure.
• Significant related party loan (£23,143) from a director, interest-free and repayable on demand, which may mask external financing needs and affect cash flow stability.
• Declining fixed assets from £66,510 (previous year) to £55,440, possibly reflecting asset disposals or lack of reinvestment, which could impact operational capacity.

3. Positive Indicators:

• Shareholders’ funds remain positive and relatively stable (£41,220), showing retained capital and net asset backing.
• Compliance with filing deadlines and no overdue accounts or confirmation statements, indicating good regulatory adherence.
• Ownership and control concentrated with a director who is also the major shareholder, potentially allowing for swift decision-making.

4. Due Diligence Notes:

• Review cash flow statements or management accounts to understand liquidity dynamics beyond balance sheet snapshots.
• Investigate the nature and terms of the director’s loan to assess implications for financial sustainability and governance.
• Clarify reasons behind fixed asset decline and confirm if operational capacity is maintained or affected.
• Consider obtaining more detailed financial information, given the micro-entity filing exemption limits transparency.