XVP CONSTRUCTIONS LTD

Executive Summary

XVP Constructions Ltd is a newly formed, small construction company with negative net assets and working capital deficits. Its minimal cash and negative equity position highlight high credit risk and poor financial resilience. Credit facilities should be declined until the company demonstrates improved liquidity, profitability, and equity strength.

XVP CONSTRUCTIONS LTD - Analysis Report

Company Number: 15734938

Analysis Date: 2025-07-29 16:52 UTC

1. Credit Opinion: DECLINE
   XVP Constructions Ltd is a very recently incorporated construction-related company showing negative net assets and working capital. The current liabilities (£1,199) exceed current assets (£634) resulting in a net current liability position of £565. The company has no employees and minimal cash (£5), indicating limited operational scale and liquidity. As a start-up with negative equity and no demonstrated trading history or profitability, it poses a high credit risk with insufficient financial strength to service debt. Approval of unsecured credit facilities or significant lending is not recommended at this stage.

2. Financial Strength:
   The balance sheet reveals net liabilities of £565 with shareholders’ funds negative by the same amount. The only equity is a nominal £1 in share capital, with accumulated losses of £566. The company has no fixed assets, and current assets consist mainly of debtors (£629) with negligible cash. The negative working capital and absence of tangible net assets indicate weak financial resilience and inability to absorb financial shocks.

3. Cash Flow Assessment:
   Cash on hand is £5, extremely limited for operational needs. The company relies heavily on receivables (£629) which may or may not be collectible promptly. Current liabilities total £1,199, creating a shortfall in liquidity. There is no evidence of a positive cash flow cycle or working capital buffer. Without external capital injection or improved cash management, the company’s ability to meet short-term obligations is doubtful.

4. Monitoring Points:

• Improvement in net current assets and overall liquidity
• Generation of positive operating cash flow and profit margins
• Increase in share capital or retained earnings to strengthen equity base
• Collection efficiency of trade debtors
• Timely filing of future accounts and confirmation statements to track financial progression