WESTGATE PAVING LTD

Executive Summary

Westgate Paving Ltd demonstrates a precarious financial position characterized by minimal net assets and liquidity, raising significant solvency and operational stability concerns. While the company maintains compliance with filing obligations and shows active market presence, the lack of detailed financial disclosures limits a thorough risk assessment. Further due diligence on profitability, cash flows, and liability details is recommended before any investment consideration.

WESTGATE PAVING LTD - Analysis Report

Company Number: 12423025

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

1. Risk Rating: HIGH
   Justification: The company’s financial data reveals an extremely minimal asset base (£1 net assets), negligible working capital, and current liabilities almost equal to current assets, indicating a very fragile financial position. The absence of profit and loss data limits insight into operational performance but the balance sheet suggests minimal financial buffer and potential solvency risks.

2. Key Concerns:

• Minimal Net Assets and Equity: Shareholders’ funds stand at £1 consistently over three years, indicating no retained earnings or capital growth, which raises concerns about the company’s ability to absorb losses or invest in growth.
• Working Capital Constraints: Current assets barely cover current liabilities, with net current assets of only £1, posing liquidity risks and potential difficulties meeting short-term obligations.
• Limited Financial Disclosure: The company has opted not to file a profit and loss account, reducing transparency and making it difficult to assess profitability, cash flow, and operational viability.

3. Positive Indicators:

• Compliance with Filing Requirements: Accounts and confirmation statements are filed on time with no overdue filings, indicating regulatory compliance and good governance practices.
• Active Website and Market Presence: An active website with clear product offerings and contact details suggests ongoing commercial activity and customer engagement.
• Stable Director and Control: The sole director and Person with Significant Control (PSC) is consistent and has a relevant occupation in construction, implying experienced leadership in the company’s sector.

4. Due Diligence Notes:

• Investigate the company’s turnover, profitability, and cash flow beyond the balance sheet to better understand operational performance and sustainability.
• Examine the nature and timing of the current liabilities, particularly the corporation tax creditor, to assess any risks of enforcement action or penalties.
• Clarify the reasons for minimal share capital and lack of reserves—whether this is due to start-up phase, low activity, or other financial constraints.
• Confirm whether the company has external financing, director loans, or other support mechanisms not reflected in the accounts.
• Review the director’s background for any past financial or regulatory issues given the company’s fragile financial position.