ST RIGGING LTD

Executive Summary

ST RIGGING LTD, a micro-entity in the construction sector, demonstrates positive net asset value but persistent liquidity shortfalls due to current liabilities exceeding current assets. The company’s small scale and sole director control increase operational and governance risks. While filings are current and compliance appears sound, further review of cash flow management and operational dependencies is advised before investment.

ST RIGGING LTD - Analysis Report

Company Number: 13455266

Analysis Date: 2025-07-20 18:09 UTC

1. Risk Rating: MEDIUM
   The company shows positive net assets and shareholder funds but current liabilities consistently exceed current assets, indicating potential liquidity pressure. The micro-entity scale and small employee count limit operational scale and diversification, which also elevates risk.

2. Key Concerns:

• Liquidity Shortfall: Current liabilities (£10,541 in 2024) exceed current assets (£3,080), resulting in negative net current assets (-£7,461) which may impair the company’s ability to meet short-term obligations.
• Declining Fixed Assets and Current Assets: Fixed assets and current assets both declined notably in the latest year, potentially signaling asset disposals or reduced operational capacity.
• Limited Scale and Single Director Control: As a micro-entity with one employee and sole director/shareholder Stevie Thomas owning 75-100%, business continuity and governance may be vulnerable to individual circumstances.

3. Positive Indicators:

• Positive Net Assets and Shareholders’ Funds: Despite liquidity concerns, net assets improved slightly from £2,680 (2023) to £3,004 (2024) reflecting some retained equity.
• Compliance with Filing Requirements: Accounts and confirmation statements are up to date with no overdue filings, showing regulatory compliance.
• Stable Industry Classification: Operates in a defined construction sector (commercial buildings) with a consistent SIC code, indicating an established business focus.

4. Due Diligence Notes:

• Investigate underlying reasons for the persistent negative net current assets and assess cash flow management practices.
• Review any off-balance sheet liabilities or contingent liabilities not evident in micro-entity accounts.
• Assess dependence on the single director/PSC for operational and financial stability and contingency plans for succession or additional management.
• Confirm no outstanding legal or regulatory issues given the company’s recent incorporation (2021) and micro size.
• Consider obtaining management accounts or cash flow forecasts to better understand short-term liquidity.