S A CONTRACTS (MIDLANDS) LIMITED

Executive Summary

S A Contracts (Midlands) Limited is a recently incorporated micro-entity with a modest equity base and current liquidity pressures indicated by negative net working capital. The company is compliant with regulatory filings and operates in a specialized trade sector, but its limited operational history and financial scale introduce medium risk from an investment perspective. Further due diligence on creditor terms and cash flow management is recommended to better assess financial stability and operational viability.

S A CONTRACTS (MIDLANDS) LIMITED - Analysis Report

Company Number: 14225430

Analysis Date: 2025-07-20 12:14 UTC

1. Risk Rating: MEDIUM
   The company shows some early-stage financial fragility with net current liabilities and a relatively low net asset base. However, it is active, compliant with filings, and has no overdue accounts or returns, mitigating immediate regulatory concerns.

2. Key Concerns:

• Negative net current assets of £6,701 indicate potential liquidity challenges to meet short-term obligations.
• Significant creditor amounts due after more than one year (£21,990) raise questions about long-term debt servicing capability.
• Small scale and early stage (incorporated in 2022, average 1 employee) with limited financial history, increasing uncertainty on operational stability and future profitability.

3. Positive Indicators:

• No overdue filings or confirmation statements, demonstrating regulatory compliance and good governance.
• Positive net assets of £8,719 showing some equity cushion despite liabilities.
• The company operates in a defined niche (plumbing, heat and air-conditioning installation) which may have steady demand in its region.

4. Due Diligence Notes:

• Review the nature and terms of the long-term creditors (£21,990) to assess repayment schedule and associated risks.
• Investigate cash flow projections and working capital management plans given the negative net current assets position.
• Confirm the identity, background, and financial commitment of key director and significant shareholder Helen Suzanne Fern, particularly given recent appointment (May 2024) and 25-50% ownership.
• Obtain further financial data or management accounts to evaluate operating performance and sustainability beyond the micro-entity filed accounts.