XANADU CONSTRUCTION (SUFFOLK ) LIMITED

Executive Summary

Xanadu Construction (Suffolk) Limited presents a low risk profile supported by strong net assets and current asset coverage of liabilities, with no filing delinquencies. However, the marked decline in cash balances and high inventory levels warrant further scrutiny to ensure liquidity and operational efficiency. The company’s regulatory compliance and stable management team provide a solid foundation for ongoing operations.

XANADU CONSTRUCTION (SUFFOLK ) LIMITED - Analysis Report

Company Number: 13206924

Analysis Date: 2025-07-29 14:35 UTC

1. Risk Rating: LOW
   Xanadu Construction (Suffolk) Limited demonstrates strong net current assets and positive net asset position, with no overdue filings or indications of financial distress. The company is active, not in liquidation or administration, and maintains compliance with Companies House filing deadlines.

2. Key Concerns:

• Significant reduction in cash balances from £924k in 2023 to £125k in 2024, which could indicate liquidity pressure despite overall strong current asset levels.
• Large stock holding (£999k) which constitutes most of current assets, potentially impacting cash conversion if inventory is not readily liquid.
• Concentration of control with Xanadu Logistics Limited owning 75-100% of shares, which may pose governance risks if minority interests or external investors seek influence.

3. Positive Indicators:

• Robust net current assets (£956k) and net assets (£1.02m), signaling good solvency and buffer to meet short-term liabilities (£194k).
• No overdue statutory filings or accounts, indicating sound regulatory compliance and governance discipline.
• Consistent directors with relevant industry experience and stable employment of 2 employees, suggesting operational continuity.

4. Due Diligence Notes:

• Investigate reasons behind significant cash reduction year-on-year and assess working capital cycle, especially stock turnover and debtor collection efficiency.
• Review stock composition and valuation methods to confirm adequacy of provisioning and realistic realizable value.
• Examine relationship and financial dependence on Xanadu Logistics Limited, including any related party transactions or guarantees.
• Confirm absence of director disqualifications or adverse legal proceedings not evident in public data.