Company Number: 14722870

Analysis Date: 2025-07-20 15:57 UTC

1. Risk Rating: MEDIUM
   VATA BUILDING CONTRACTORS LTD is a newly incorporated small private limited company with modest net assets and positive net working capital. However, limited operating history, negligible cash balances, and low turnover information restrict confidence in its immediate solvency and operational stability.

2. Key Concerns:

• Limited Operating History: Incorporated in March 2023, the company has less than two full financial years of activity, which limits visibility into revenue consistency and profitability.
• Low Cash Reserves: Cash at bank is £5,717 against current liabilities of £14,820, indicating potential liquidity constraints despite positive net current assets.
• Single Director and Shareholder Control: Full ownership and control by one individual concentrates operational and governance risk, with no evident checks and balances.

3. Positive Indicators:

• Positive Net Current Assets and Net Assets: Net current assets of £13,849 demonstrate short-term asset coverage of liabilities, suggesting solvency at the balance sheet date.
• No Overdue Filings or Compliance Issues: Accounts and confirmation statements are filed on time, indicating regulatory compliance and governance diligence.
• Clear Accounting Policies and Small Company Exemptions Utilised Properly: The company has prepared accounts in accordance with applicable standards, with transparent notes and disclosures.

4. Due Diligence Notes:

• Revenue Generation and Contract Pipeline: Verify turnover figures and confirm ongoing contract awards or future revenue streams given the construction industry SIC code.
• Cash Flow Position and Working Capital Management: Investigate cash flow statements and timing of debtor collections versus creditor payments to assess liquidity sufficiency.
• Director's Background and Related Party Transactions: Assess the experience and reputation of Mr. Denian Vata, and review any related party dealings or financial support arrangements.
• Contingent Liabilities or Unreported Debt: Given the small scale and short history, check for any off-balance sheet liabilities or guarantees.
• Insurance and Compliance with Construction Regulations: Confirm that the company holds appropriate insurance policies and meets regulatory requirements relevant to domestic building work.