SS1 SCAFFOLDING LTD

Executive Summary

SS1 Scaffolding Ltd shows an improved net asset position in 2023 driven by fixed asset growth but continues to exhibit negative working capital, raising liquidity concerns. The company’s small scale and single director control introduce operational and governance risks. While regulatory compliance is satisfactory, further investigation into asset quality and operational capacity is advised to fully assess financial stability.

SS1 SCAFFOLDING LTD - Analysis Report

Company Number: 13611912

Analysis Date: 2025-07-20 18:06 UTC

1. Risk Rating: MEDIUM
   The company has demonstrated a material turnaround in net assets from negative (£1,277) in 2022 to a positive £138,193 in 2023, largely driven by a significant increase in fixed assets. However, the persistent negative net current assets position (-£61,229 in 2023) signals liquidity constraints. The micro-entity status and limited employee base also indicate a very small scale operation with limited financial resilience.

2. Key Concerns:

• Negative Net Current Assets: Consistent working capital deficits in both 2022 and 2023 suggest cash flow pressures and potential difficulty in meeting short-term liabilities promptly.
• Lack of Employees: The average number of employees is zero for the latest year, indicating potential operational capacity issues or reliance on subcontractors that may affect sustainability.
• Concentration of Control: Single director and 75-100% shareholder control by one individual concentrates decision-making risk and may limit governance oversight.

3. Positive Indicators:

• Improved Net Asset Position: The significant increase in fixed assets and net assets in 2023 reflects some success in asset investment or capital injection, which strengthens the balance sheet.
• Timely Filing Compliance: Both accounts and confirmation statements are up to date, indicating adherence to regulatory requirements.
• Active Trading Status: The company remains active with no indication of insolvency proceedings, suggesting ongoing business operations.

4. Due Diligence Notes:

• Investigate the nature and liquidity of fixed assets (e.g., scaffolding equipment, property) to assess their realisable value and impact on solvency.
• Clarify the operational model given the absence of employees—whether the company uses subcontractors or other arrangements that may influence cost structure and risk.
• Review cash flow statements (if available) to understand how the company manages working capital deficits and meets liabilities.
• Assess director’s background and financial commitment given sole control, to identify any governance or continuity risks.
• Confirm if any contingent liabilities or off-balance sheet obligations exist that could further impact financial stability.