Company Number: 12887204

Analysis Date: 2025-07-29 15:55 UTC

1. Risk Rating: MEDIUM
   Urban Project Construction Ltd demonstrates a modest asset base with negative net current assets and declining net assets over recent years. While still solvent on a net asset basis, the deterioration in working capital and net equity suggests some financial strain and potential liquidity risk. The company is small and exempt from audit, limiting financial transparency.

2. Key Concerns:

• Negative Net Current Assets: At 31 October 2024, net current liabilities stand at £13,138, worsening from a marginal -£468 the previous year, indicating potential short-term liquidity constraints.
• Declining Net Assets and Shareholders’ Funds: Net assets have decreased from £19,785 in 2023 to £14,517 in 2024, reflecting erosion of equity possibly due to trading losses or increased liabilities.
• Limited Financial Disclosure: As a micro-entity exempt from audit and with minimal filing requirements, the financial information is limited, restricting deeper insight into profitability, cash flow, or contingent liabilities.

3. Positive Indicators:

• Active Status with Up-to-Date Filings: The company is active and has filed accounts and confirmation statements on time, showing compliance with statutory requirements.
• Stable Management and Control: Both directors have been in place since incorporation, with clear ownership and control structure, suggesting stable governance.
• Niche Industry Focus: Operating in joinery installation, the company may benefit from specialized market positioning and local reputation as indicated by its active website presence.

4. Due Diligence Notes:

• Review detailed profit and loss data and cash flow statements if available to assess operational profitability and cash generation.
• Investigate reasons behind the increase in current liabilities and whether these are trade payables, loans, or other obligations.
• Confirm the nature and terms of long-term creditors (£10,965) to understand solvency risk beyond short-term liquidity.
• Examine director conduct records and any related party transactions given the small and closely held nature of the company.
• Assess market conditions and client base stability within the joinery installation sector locally.