Company Number: 13800504

Analysis Date: 2025-07-29 16:28 UTC

1. Risk Rating: LOW-MEDIUM
   CONSTRUCTIONS ART LIMITED shows a modest but consistent increase in turnover and positive net assets over a short operational history. The company is micro-sized with no overdue filings, indicating compliance with regulatory requirements. However, the absence of current assets and low working capital suggest some liquidity limitations typical for a small business at this stage.

2. Key Concerns:

• Liquidity Position: Current assets are reported as zero, with net current assets at zero in 2023 and negative in 2022, highlighting potential short-term liquidity constraints or tight cash flow management.
• Concentration of Control: A single individual (Xxxxxx Xxxxxxxxname shown to subscribers) holds 75-100% share and voting control, which could present governance risks if diversification or succession planning is lacking.
• Limited Financial History and Scale: Incorporated recently (2021) with micro entity status; modest turnover and low fixed assets base may limit operational resilience in adverse market conditions.

3. Positive Indicators:

• Profitability: The company reported a profit in 2023 (£11,088) and 2022 (£13,321), demonstrating operational sustainability despite small scale.
• Regulatory Compliance: All statutory filings including accounts and confirmation statements are up to date with no overdue returns.
• Increasing Turnover and Net Assets: Turnover nearly doubled from 2022 to 2023 (£149,655 to £272,346) and net assets increased substantially (£17,547 to £41,660), indicating growth and reinvestment.

4. Due Diligence Notes:

• Cash Flow Analysis: Review detailed cash flow statements or bank statements to assess liquidity management given zero current assets reported.
• Related Party Transactions: Investigate any transactions with directors or entities connected to Xxxxxx Xxxxxxxxname shown to subscribers to identify potential conflicts of interest.
• Business Model and Market Position: Clarify the scope of activities given diverse SIC codes (real estate management, web portals, retail, vehicle sales) to understand revenue drivers and operational focus.
• Director Background: Assess Xxxxxx Xxxxxxxxname shown to subscribers’s qualifications and experience in engineering consultancy and management to gauge management capability.