Company Number: 14193111

Analysis Date: 2025-07-29 16:59 UTC

1. Credit Opinion: APPROVE with caution
   RAJJ CONSTRUCTION LIMITED is a newly incorporated micro-entity (since June 2022) operating in the construction of domestic buildings. The company shows positive net assets and working capital, with an improving financial position between 2023 and 2024. However, the business currently has no employees and limited fixed assets, which is typical for a micro business but suggests scale limitations. The sole director and 100% owner has full control, which can be positive for decision-making but concentrates risk. Given the early stage and small scale, credit should be extended cautiously, possibly with limits aligned to size and short-term repayment conditions.

2. Financial Strength:

• Net assets increased from £5,257 in 2023 to £6,685 in 2024, reflecting growth in shareholders’ funds.
• Fixed assets slightly declined to £5,381 from £6,563, indicating minimal investment or asset disposals.
• Current assets increased substantially from £242 to £1,916, improving liquidity.
• Current liabilities decreased from £1,548 (including long-term creditors in 2023) to £612, reducing short-term debt pressure.
• Working capital is positive at £1,304, supporting short-term obligations.
  Overall, the balance sheet is sound for a micro business with no apparent solvency concerns.

3. Cash Flow Assessment:

• The increase in current assets and reduction in creditors suggests improved liquidity, but absolute values remain modest.
• No employees indicate low operating overhead, reducing cash burn risk.
• Lack of detailed cash flow statements limits deeper analysis, but working capital and net asset growth imply positive operational cash flow or equity injections.
• Monitoring cash inflows from construction contracts is critical as this sector can have variable cash conversion cycles.

4. Monitoring Points:

• Growth in turnover and profitability as the company scales beyond micro-entity status.
• Cash flow consistency, especially in managing receivables and payables given the construction sector’s payment practices.
• Any increase in liabilities or delayed payments that could strain liquidity.
• Director’s management of operational risks given sole control and absence of other staff.
• Timely filing of future accounts and returns to maintain compliance and transparency.