STEVE OSBORNE CONSTRUCTION LTD

Executive Summary

Steve Osborne Construction Ltd demonstrates solvency with positive net assets but faces liquidity challenges evidenced by negative net current assets and increasing current liabilities. The company maintains good regulatory compliance but shows signs of operational cash flow pressure that warrant further investigation. Overall, the risk profile is medium, reflecting these mixed factors.

STEVE OSBORNE CONSTRUCTION LTD - Analysis Report

Company Number: 13195758

Analysis Date: 2025-07-29 16:27 UTC

1. Risk Rating: MEDIUM
   The company shows negative net current assets for the latest two years, indicating potential short-term liquidity pressure. However, it remains solvent with positive net assets and shareholders’ funds. The absence of overdue filings and no indications of regulatory issues moderate the risk level.

2. Key Concerns:

• Liquidity Constraints: Negative net current assets (£-3,653 in 2024) suggest that current liabilities exceed current assets, potentially impacting the company’s ability to meet short-term obligations.
• Rising Current Liabilities: Current liabilities increased significantly from £29,362 in 2023 to £39,836 in 2024, primarily including corporation tax and other taxation, which may indicate cash flow strain.
• Small Share Capital and Reserves: Share capital is nominal (£90), and profit and loss reserves have declined from £12,814 in 2023 to £9,305 in 2024, reflecting reduced retained earnings and possible operational challenges.

3. Positive Indicators:

• Solvent Position: The company maintains positive net assets (£9,395 in 2024), indicating solvency on a balance sheet basis.
• Timely Compliance: No overdue accounts or confirmation statements, showing good regulatory compliance and governance.
• Stable Fixed Assets: Tangible fixed assets are consistent, with investment in plant and machinery, suggesting ongoing operational activity and capital maintenance.
• Experienced Management Team: Directors have relevant occupations linked to the construction industry, indicating operational knowledge.

4. Due Diligence Notes:

• Review the company’s cash flow statements and bank statements to assess actual liquidity and cash management practices.
• Investigate the nature and timing of current liabilities, particularly the increase in corporation tax and other taxation, to understand if these are one-off or recurring cash outflows.
• Evaluate profitability trends and revenue recognition policies, given the decline in reserves and absence of a profit and loss account in the filing.
• Clarify whether any contingent liabilities exist that are not captured in the balance sheet.
• Consider the impact of operating lease commitments, though relatively small, on cash flow requirements.