TIC CONSTRUCTION RO LTD

Executive Summary

TIC CONSTRUCTION RO LTD is an early-stage construction company showing modest asset growth and positive net assets, but limited cash reserves and a high debtor balance pose liquidity risks. The company is compliant with filing requirements and transparent in accounting, though operational sustainability and governance concentration should be further examined. Overall, the company presents medium investment risk pending further due diligence on debtor quality and business model viability.

TIC CONSTRUCTION RO LTD - Analysis Report

Company Number: 13820832

Analysis Date: 2025-07-29 15:14 UTC

1. Risk Rating: MEDIUM
   The company shows modest net current assets and net assets with positive equity, indicating some solvency. However, very low cash balances and reliance on debtors, together with a recent start date and no employees, warrant caution.

2. Key Concerns:

• Liquidity risk: Cash on hand is only £787 at year-end 2024, which is minimal compared to current liabilities of £42,443. High debtor balances (£53,183) suggest potential cash flow timing issues or collection risk.
• Operational sustainability: The company has no employees and limited tangible fixed assets, which may impact ability to scale or fulfill contracts independently.
• Concentrated control and governance: Two directors control the company, with one holding 75-100% shares and voting rights, which may pose governance risks in absence of broader oversight.

3. Positive Indicators:

• Growing working capital: Net current assets improved from £368 in 2023 to £11,527 in 2024, showing some operational progress.
• Compliance: Company filings including accounts and confirmation statements are up to date with no overdue submissions, suggesting regulatory compliance.
• Clear accounting policies and preparation in line with FRS 102 for small entities, providing reasonable transparency in financial reporting.

4. Due Diligence Notes:

• Investigate the quality and aging of trade and other debtors (£38,859 total) to assess collectability and cash flow risk.
• Confirm the nature of director loans (£2) and related party transactions to rule out financial dependency or conflicts.
• Understand the business model and contract pipeline given zero employees and minimal fixed assets, including reliance on subcontractors or external resources.
• Review any contingent liabilities or off-balance sheet commitments not disclosed.
• Assess director background and track record for governance and operational experience given concentrated ownership.